(a) Suppose we have preferences U(X,Y) =X+2Y. Graph/sketch the indifference curve through X = 10 and...

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(a) Suppose we have preferences U(X,Y) =X+2Y. Graph/sketch the indifference curve through X = 10 and Y = 10. What is the utility and explain why it looks the way it does. (b) What is the Marginal Rate of Substitution for these preferences? Calculate then interpret the value. (c) Suppose the consumer wanted to maximize utility subject to their budget constraint. State the consumer's maximization problem and express this in words. (d) Sketch the consumer's optimization solution in a figure and explain. (e) Let Px = $7.50, Py = $10 and income M = $600. Find optimal X, Y and the resulting Utility. (f) Now suppose we offered a discount so that good X was priced at $3 for the first 20 units but rises to $7.50 for any quantity above that. Let Py = $10 and income M = $600. Draw the new budget line. (g) Find optimal X, Y and the resulting Utility given the discount in (f). (a) Suppose we have preferences U(X,Y) =X+2Y. Graph/sketch the indifference curve through X = 10 and Y = 10. What is the utility and explain why it looks the way it does. (b) What is the Marginal Rate of Substitution for these preferences? Calculate then interpret the value. (c) Suppose the consumer wanted to maximize utility subject to their budget constraint. State the consumer's maximization problem and express this in words. (d) Sketch the consumer's optimization solution in a figure and explain. (e) Let Px = $7.50, Py = $10 and income M = $600. Find optimal X, Y and the resulting Utility. (f) Now suppose we offered a discount so that good X was priced at $3 for the first 20 units but rises to $7.50 for any quantity above that. Let Py = $10 and income M = $600. Draw the new budget line. (g) Find optimal X, Y and the resulting Utility given the discount in (f).