Question: A consumer's utility function with respect to two goods, x and y is given by U(x, y) = xy + 10 x. Let the prices

A consumer's utility function with respect to two goods, x and y is given by U(x, y) = xy + 10 x. Let the prices of the goods, x and y be Px and Py respectively. Income of individual is I.

a. What is the marginal utility (MU) of goods X and Y?

b. How does the demand for good y look? That is, in equilibrium, what is the quantity consumed of y in terms of income and price of y?

c. What is the minimum price at which a consumer does not consume any amount of good y? That is, what is the choke price for good y?

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