The table shows the total utility (TU) that James receives from consuming different amounts of two goods X and Y, per month. QuantityTUxMUxMUx/PxTUyMUyMUy/Py00000001505016.67757525.002883812.671174214.0031213311.001533612.004150299.67181289.335175258.33206258.336196217.00225196.337214186.00243186.008229155.00260175.679241124.00276165.33d.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?

Utility analysis is important component of microeconomic analysis, it enables to find the…

Answered: d.How much total utility will James…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table shows the total utility (TU) that James receives from consuming different amounts of two goods X and Y, per month.

Quantity	TUx	MUx	MUx/Px	TUy	MUy	MUy/Py
0	0	0	0	0	0	0
1	50	50	16.67	75	75	25.00
2	88	38	12.67	117	42	14.00
3	121	33	11.00	153	36	12.00
4	150	29	9.67	181	28	9.33
5	175	25	8.33	206	25	8.33
6	196	21	7.00	225	19	6.33
7	214	18	6.00	243	18	6.00
8	229	15	5.00	260	17	5.67
9	241	12	4.00	276	16	5.33

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?

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