2. The table shows the total utility (TU) that James receives from consuming different amounts of two goods X and Y, per month. Quantity MUx/Px TUy 0. MUy MUy/Py 50 75 88 117 3 121 153 150 181 175 206 6. 196 225 214 243 8. 229 260 9. 241 276 a. Fill in the other columns of the table by calculating the marginal utilities for goods X and Y and the ratios of marginal utilities to price for the two goods. Assume that the price of both goods X and Y is $3. b. If James allocates $30 to spend on both goods, how many units will he buy of each? c. How much will James spend on each good at the utility maximizing combination? d. How much total utility will James experience by buying the utility-maximizing combination? e. Suppose the price of good Y increases to $6. How many units of X and Y will he buy to maximize his utility now? 012 M4
2. The table shows the total utility (TU) that James receives from consuming different amounts of two goods X and Y, per month. Quantity MUx/Px TUy 0. MUy MUy/Py 50 75 88 117 3 121 153 150 181 175 206 6. 196 225 214 243 8. 229 260 9. 241 276 a. Fill in the other columns of the table by calculating the marginal utilities for goods X and Y and the ratios of marginal utilities to price for the two goods. Assume that the price of both goods X and Y is $3. b. If James allocates $30 to spend on both goods, how many units will he buy of each? c. How much will James spend on each good at the utility maximizing combination? d. How much total utility will James experience by buying the utility-maximizing combination? e. Suppose the price of good Y increases to $6. How many units of X and Y will he buy to maximize his utility now? 012 M4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
I only need help with letters C. D. And E. ONLY!!!
![2. The table shows the total utility (TU) that James receives from consuming different
amounts of two goods X and Y, per month.
Quantity
MUx/Px
TUy
0.
MUy
MUy/Py
50
75
88
117
3
121
153
150
181
175
206
6.
196
225
214
243
8.
229
260
9.
241
276
a. Fill in the other columns of the table by calculating the marginal utilities for goods
X and Y and the ratios of marginal utilities to price for the two goods. Assume that
the price of both goods X and Y is $3.
b. If James allocates $30 to spend on both goods, how many units will he buy of each?
c. How much will James spend on each good at the utility maximizing combination?
d. How much total utility will James experience by buying the utility-maximizing
combination?
e. Suppose the price of good Y increases to $6. How many units of X and Y will he
buy to maximize his utility now?
012 M4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bb0a428-8046-4a26-8c11-27a696d0ed4d%2F8e076d6e-12bb-481c-965e-90db2254b354%2Fetbtj49.jpeg&w=3840&q=75)
Transcribed Image Text:2. The table shows the total utility (TU) that James receives from consuming different
amounts of two goods X and Y, per month.
Quantity
MUx/Px
TUy
0.
MUy
MUy/Py
50
75
88
117
3
121
153
150
181
175
206
6.
196
225
214
243
8.
229
260
9.
241
276
a. Fill in the other columns of the table by calculating the marginal utilities for goods
X and Y and the ratios of marginal utilities to price for the two goods. Assume that
the price of both goods X and Y is $3.
b. If James allocates $30 to spend on both goods, how many units will he buy of each?
c. How much will James spend on each good at the utility maximizing combination?
d. How much total utility will James experience by buying the utility-maximizing
combination?
e. Suppose the price of good Y increases to $6. How many units of X and Y will he
buy to maximize his utility now?
012 M4
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