| Units of x | MUx | Units of y | MUy |
|---|---|---|---|
| 1 | 23 | 1 | 18 |
| 2 | 16 | 2 | 16 |
| 3 | 12 | 3 | 14 |
| 4 | 8 | 4 | 10 |
| 5 | 4 | 5 | 8 |
| 6 | 2 | 6 | 4 |
You are choosing between two goods, X and Y, and your marginal utility from each is as shown above.
Instructions: Enter your answers as whole numbers.
a. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? X=_units. Y = _units.
b. What total utility will you realize? _.
c. Assume that, other things remaining unchanged, the price of X falls to $1.00. What quantities of X and Y will you now purchase? X=units. Y= units.
d. Using the two prices and quantities for X, derive a demand schedule (a table showing prices and quantities demanded) for X.
| Price | Quantity demand |
|---|---|
| ? | ? |
| ? | ? |