Kate has the utility function U(x, y) = 100*x - \frac{x^2 }{2} + y where x is her consumption of earplugs and y 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 $7O, then her net consumer's surplus Select one: a. falls by 2,800. b. falls by 800. c. falls by 600. d. increases by 400. e. increases by 1,600.

Kate has the utility function U(x, y) = 100*x - \frac{x^2 }{2} + y where x is her consumption of earplugs and y 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 $7O, then her net consumer's surplus Select one: a. falls by 2,800. b. falls by 800. c. falls by 600. d. increases by 400. e. increases by 1,600.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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