MsQuasimodo Has the Utility Function U(x, M)= 100x - X²/2

question 28

Multiple Choice

Ms.Quasimodo has the utility function U(x, m) = 100x - x²/2 + m, where x is her consumption of earplugs and m is money left over to spend on other stuff.If she has $10,000 to spend on earplugs and other stuff and if the price of earplugs rises from $50 to $75, then her net consumer's surplus

• A)falls by 937.50.
• B)falls by 625.
• C)falls by 2,937.50.
• D)increases by 468.75.
• E)increases by 1,875.

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Definitions:

Self-Image

A person's mental representation of themselves, shaped by personal experiences, social interactions, and internalized beliefs and attitudes.

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A concept in sociology and psychology referring to an authority recognized as rightful or lawful by those over whom it is exercised, often based on social norms or government position.

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An individual who takes part in a research experiment or investigation, often contributing data or responses.

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A series of social psychology experiments conducted by Stanley Milgram, which demonstrated the power of obedience to authority.