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

question 25

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 $85, then her net consumer's surplus

• A)falls by 1,137.50.
• B)falls by 3,137.50.
• C)falls by 525.
• D)increases by 568.75.
• E)increases by 2,275.

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Definitions:

External Data

Information that originates outside the organization and is used for analysis or decision making.

Economic Analyses

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints.

Numerical Values

Quantitative data represented by numbers.

Metric

A standard unit of measurement or a quantifiable indicator used to assess, compare, or track performance or efficiency.