You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. Units of X MUX Units of Y MUy 10 2 8. 2 7 3. 6. 3. 6. 4 3. 4 3 Instructions: Enter your answers as whole numbers. a. If your income is $18.00 and the prices of X and Y are $4.00 and $2.00, respectively, what quantities of each will you purchase to maximize utility? O units. Y =O units. b. What total utility will you realize? c. Assume that, other things remaining unchanged, the price of X falls to $2.00. What quantities of X and Y will you now purchase? O units. X =O units.

You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. Units of X MUX Units of Y MUy 10 2 8. 2 7 3. 6. 3. 6. 4 3. 4 3 Instructions: Enter your answers as whole numbers. a. If your income is $18.00 and the prices of X and Y are $4.00 and $2.00, respectively, what quantities of each will you purchase to maximize utility? O units. Y =O units. b. What total utility will you realize? c. Assume that, other things remaining unchanged, the price of X falls to $2.00. What quantities of X and Y will you now purchase? O units. X =O units.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 2QFR

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