Answer the questions below

1. The table below shows the marginal utility schedule for orange (X) and apples (Y). Suppose that oranges and apples are the only two commodities available, the price of orange is K10 the price of apple is K10, and individual income is K800 per time period and all is spent. Quantity Marginal utility of X Marginal Utility of Y 10 110 190 20 100 170 30 90 150 40 80 130 50 70 120 60 60 100 70 50 80 a. Indicate how this individual should spend her income in order to maximize utility b. What is the total amount of utility received by this individual when she/he is in equilibrium? c. Show the equilibrium of this consumer. 1. A consumer Marginal utilities for commodities X and Y are given as MUX = 40-10X and MUy = 30-6Y respectively. (a) What is the consumer's marginal rate of substitution (MRS) in consumption at the consumption basket X=3, Y=4? (b) If Px =10 and Py=6, is the basket a consumption equilibrium? Make sure that you show all the steps