Ms Quasimodo in Problem 3 Has the Utility Function U(x

Ms. Quasimodo in Problem 3 has the utility function U(x, 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 $75, then her net consumer's surplus

A) falls by 937.50.
B) falls by 625.
C) falls by 2,937.50.
D) increases by 468.75.
E) increases by 1,875.

Correct Answer:

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