|Units of x||MUx||Units of y||MUy|
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.