Exam 13: Consumers Surplus-Part A

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If somebody is buying 10 units of x and the price of x falls by $4, then that person's net consumer's surplus must increase by at least $40.

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Lolita, the Holstein cow, has a utility function is U(x, y)= x - x2/2 + y, where x is her consumption of cow feed and y is her consumption of hay.If the price of cow feed is $.30, the price of hay is $1, and her income is $4, and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be

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