Question: Ms. Quasimodo has the utility function U ( x , m ) 100 x + x ^2 / 2 + m , where x is
Ms. Quasimodo has the utility function U ( x , m ) 100 x + x ^2 / 2 + 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 $ 95 , then her net consumer 's surplus
a) falls by 1237.50
b) falls by 3237.50
c) falls by 225
d) increases by 618.75
e) increases by 2,475
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