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

Question 15

Multiple Choice

Ms. Quasimodo in Problem 3 has the utility function U(x, m) 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 $70, then her net consumer's surplus A)  falls by 800. B)  increases by 400. C)  falls by 600. D)  falls by 2,800. E)  increases by 1,600. , 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) falls by 800.
B) increases by 400.
C) falls by 600.
D) falls by 2,800.
E) increases by 1,600.

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