Quasimodo from your workbook has the utility function , where x is his consumption of earplugs and m is money left over to spend on other stuff. If he has $10,000 to spend on earplugs and other stuff and if the price of earplugs rises from $50 to $75, then his net consumer's surplus
A) falls by 937.50.
B) increases by 468.75.
C) falls by 2,937.50.
D) falls by 625.
E) increases by 1,875.

Question

Quasimodo from your workbook has the utility function  , where x is his consumption of earplugs and m is money left over to spend on other stuff. If he has $10,000 to spend on earplugs and other stuff and if the price of earplugs rises from $50 to $75, then his net consumer's surplus
A) falls by 937.50. 
B) increases by 468.75. 
C) falls by 2,937.50. 
D) falls by 625. 
E) increases by 1,875.

Quizplus · Accepted Answer

The Answer of Quasimodo from your workbook has the utility function  , where x is his consumption of earplugs and m is money left over to spend on other stuff. If he has $10,000 to spend on earplugs and other stuff and if the price of earplugs rises from $50 to $75, then his net consumer's surplus
A) falls by 937.50. 
B) increases by 468.75. 
C) falls by 2,937.50. 
D) falls by 625. 
E) increases by 1,875.

Quasimodo from Your Workbook Has the Utility Function