Suppose that Mr. Umais spends his entire income on good X and Y. The marginal utility of each commodity is recorded in the table below. If the price of X is Rs. 100 and price of Y is 500 and mr. Umais has an income of Rs. 1000 per month. How many units of each good should he purchase? Units of X and Y MU x MU y 1 20 50 2 18 45 3 16 40 4 13 35 5 10 30 6 6 25 7 4 20 8 2 15 a. (X, Y) = (5, 0) b. (X, Y) = (5, 5) c. (X, Y) = (0, 5) d. cannot be determined
Suppose that Mr. Umais spends his entire income on good X and Y. The
Units of X and Y MU x MU y
1 20 50
2 18 45
3 16 40
4 13 35
5 10 30
6 6 25
7 4 20
8 2 15
a. (X, Y) = (5, 0)
b. (X, Y) = (5, 5)
c. (X, Y) = (0, 5)
d. cannot be determined
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