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Exhibit 6-11 If Ken Is Originally at Point a in Exhibit

Question 131

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Exhibit 6-11 Exhibit 6-11   If Ken is originally at point a in Exhibit 6-11 and then moves to point b due to a reduction in the price of neckties, his expenditure A) increases from $20 to $25, increasing both consumer surplus and total utility B) increases from $20 to $25, decreasing both consumer surplus and total utility C) stays at $20, leaving both consumer surplus and total utility unchanged D) stays at $20, but both consumer surplus and total utility increase E) decreases as price falls, increasing both consumer and surplus and total utility If Ken is originally at point a in Exhibit 6-11 and then moves to point b due to a reduction in the price of neckties, his expenditure


A) increases from $20 to $25, increasing both consumer surplus and total utility
B) increases from $20 to $25, decreasing both consumer surplus and total utility
C) stays at $20, leaving both consumer surplus and total utility unchanged
D) stays at $20, but both consumer surplus and total utility increase
E) decreases as price falls, increasing both consumer and surplus and total utility

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