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

question 29

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 $70, then her net consumer's surplus

• A)increases by 400.
• B)falls by 2,800.
• C)falls by 600.
• D)falls by 800.
• E)increases by 1,600.

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Definitions:

Preconscious

Part of the mind that contains thoughts and feelings that are not currently in conscious awareness but can be easily brought to consciousness.

Unconscious

Part of the mind that is not within thought's immediate awareness, influencing behaviors and thoughts without our knowing.

Sense of Self

An individual's perception of their personality traits, physical characteristics, abilities, values, goals, and roles that constitute their identity.

Unique

Being the only one of its kind; without an equal or equivalent; distinctly characteristic.