II. The Table below gives an individual's MUx and MUy schedule. Suppose X and Y are...

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II. The Table below gives an individual's MUx and MUy schedule. Suppose X and Y are the only two commodities available and Px = P2 while Py = P1. The individual's income is P12 and is all spent. Q Mux MUY 1 16 11 2 14 10 3 12 9 4 10 8 5 8 7 6 6 4 6 5 7 1. Show how will the individual spend his income on these 2 commodities to maximize his utility. 2. State mathematically the equilibrium condition for the consumer II. The Table below gives an individual's MUx and MUy schedule. Suppose X and Y are the only two commodities available and Px = P2 while Py = P1. The individual's income is P12 and is all spent. Q Mux MUY 1 16 11 2 14 10 3 12 9 4 10 8 5 8 7 6 6 4 6 5 7 1. Show how will the individual spend his income on these 2 commodities to maximize his utility. 2. State mathematically the equilibrium condition for the consumer

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1 To maximize utility the individual will allocate their income in such a way that the marginal util... View the full answer