II. The Table below gives an individual's MUx and MUy schedule. Suppose X andare the only two commodities available and Px = P2 while Py = P1. Theindividual's income is P12 and is all spent.Q1234567Mux16141210864MUY111098651. Show how will the individual spend his income on these 2 commodities to maximizehis utility.2. State mathematically the equilibrium condition for the consumer

Optimal consumption point for a consumer is achieved where the marginal rate of substitution is…

The Table below gives an individual's MUx and MUy schedule. Suppose X and are the only two commodities available and Px = P2 while Py = P1. The individual's income is P12 and is all spent. Q 1 2 3 4 5 Mux 16 14 12 10 8 6 MUY 11 10 9 8 7 6

The Table below gives an individual's MUx and MUy schedule. Suppose X and are the only two commodities available and Px = P2 while Py = P1. The individual's income is P12 and is all spent. Q 1 2 3 4 5 Mux 16 14 12 10 8 6 MUY 11 10 9 8 7 6

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

II. The Table below gives an individual's MUx and MUy schedule. Suppose X and
are the only two commodities available and Px = P2 while Py = P1. The
individual's income is P12 and is all spent.
Q
1
2
3
4
5
6
7
Mux
16
14
12
10
8
6
4
MUY
11
10
9
8
6
5
1. Show how will the individual spend his income on these 2 commodities to maximize
his utility.
2. State mathematically the equilibrium condition for the consumer

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