Refer to the figure below. The socially optimal quantity in this market is ________ units per day.

If a consumer is initially in equilibrium, an increase in money income will:

A. Move the consumer to a new equilibrium on a lower indifference curve B. Move the consumer to a new equilibrium on a higher indifference curve C. Make the slope of the consumer's indifference curves steeper D. Have no effect on the equilibrium position

In the above figure, at point b on the demand curve, a price cut of one dollar will

A) increase total revenue. B) decrease total revenue. C) leave total revenue unchanged. D) have an indeterminate effect on total revenue.