Quasimodo from Your Workbook Has the Utility Function

question 38

Multiple Choice

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.

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