Multiple Choice
Albin has quasilinear preferences and he loves pretzels.His inverse demand function for pretzels is p(x) = 49 - 6x, where x is the number of pretzels that he consumes.He is currently consuming 8 pretzels at a price of $1 per pretzel.If the price of pretzels rises to $7 per pretzel, the change in Albin's consumer surplus is
A) -$90.
B) -$56.
C) -$42.
D) -$45.
E) -$42
Correct Answer:
Verified
Correct Answer:
Verified
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