Question: Suppose a consumer's utility function equals: U=XY. Currently the consumer has an income of $180 to spend on goods X and Y. The price of

Suppose a consumer's utility function equals: U=XY. Currently the consumer has an income of $180 to spend on goods X and Y. The price of X is $3 and the price of Y is $5.

i) Determine the marginal utility of x.

ii) Determine the marginal utility of y.

iii) Determine the MRSyx.

iv) What quantities of X and Y should this consumer consume to maximize their satisfaction subject to their budget constraint?

v) What is their highest value of utility subject to the consumer's budget constraint?

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