Question: You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table below. If your income

You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table below. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? What total utility will you realize? Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase?

Using the two prices and quantities for X, derive a demand schedule (price–quantity-demanded table) for X.

Units of X MUx Units of Y MU 10 6 4 4

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