Gordon’s preferences can be
represented by the utility function u(x,z) = 100x +
x2/2
+ z, where x is his consumption of gin and z
denotes the amount of money left over to spend on other stuff. If
he has $10,000 to spend on gin and other stuff and if the price of
gin rises from $50 to $70 then the change in his consumer surplus
is
Explanation:-
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