Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
Q126: When price decreases, consumer surplus<br>A)increases<br>B)remains constant<br>C)decreases<br>D)becomes negative<br>E)may
Q127: The fact that the washroom usually has
Q128: Elvis values the first gravy sandwich at
Q129: A utility-maximizing consumer equalizes marginal utilities across
Q130: The law of diminishing marginal utility may
Q132: Negative marginal utility means that<br>A)total utility is
Q133: Which of the following people is least
Q134: Consumer surplus can be used to compare
Q135: Exhibit 6-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 6-3
Q136: Consumers must understand the law of diminishing