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The Following Diagram Shows Ken's Demand Curve for Neckties

Question 24

Multiple Choice

The following diagram shows Ken's demand curve for neckties. When the price of neckties is $5, Ken purchases four neckties. When the price of neckties falls to $4, he purchases five neckties. A decline in the price of neckties causes his expenditure to: ​
Figure 6.3​

The following diagram shows Ken's demand curve for neckties. When the price of neckties is $5, Ken purchases four neckties. When the price of neckties falls to $4, he purchases five neckties. A decline in the price of neckties causes his expenditure to: ​ Figure 6.3​ ​   A) increase from $20 to $25, increasing his consumer surplus. B) increase from $20 to $25, decreasing his consumer surplus. C) remain constant at $20, leaving his consumer surplus unchanged. D) remain constant at $20, increasing his consumer surplus. E) decrease from $20 to $15, increasing his consumer surplus.


A) increase from $20 to $25, increasing his consumer surplus.
B) increase from $20 to $25, decreasing his consumer surplus.
C) remain constant at $20, leaving his consumer surplus unchanged.
D) remain constant at $20, increasing his consumer surplus.
E) decrease from $20 to $15, increasing his consumer surplus.

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