Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 4

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.