Quasimodo has the utility function U (x, m) = 200x – 5 + m, 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 $70, then his net consumer's surplus falls by 600. increases by 400. falls by 2800.

Quasimodo has the utility function U (x, m) = 200x – 5 + m, 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 $70, then his net consumer's surplus falls by 600. increases by 400. falls by 2800.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 8QFR

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