Question: Answer the below question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and

Units of X 123456 Marginal Utility, X 20 16 12 8 6Answer the below question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18.

1. What level of total utility will the utility-maximizing consumer realize?

a. 96 utils

b. 108 utils

c. 72 utils

d. 142 utils

2. What quantities of X and Y should be purchased to maximize utility?

a. 2 of X and 1 of Y

b. 4 of X and 5 of Y

c. 2 of X and 5 of Y

d. 2 of X and 6 of Y

3. If the price of X decreases to $2, then the utility-maximizing combination of the two products is:

a. 2 of X and 5 of Y

b. 4 of X and 6 of Y

c. 6 of X and 3 of Y

d. 4 of X and 5 of Y

Units of X 123456 Marginal Utility, X 20 16 12 8 6 4 Units of Y 123456 2 4 Marginal Utility, Y 16 14 12 10 8 6

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