You Have $5 to Spend on Any Combination of Goods

Essay

You have $5 to spend on any combination of goods A and
B. Are you maximizing your utility? If so, explain why. If not, what combination of goods should you buy?
B. The price of good A is $2 and the price of good B is $1. You have calculated the following utility values for yourself:
$$\begin{array} { c c c c c c c } \hline \text { Units } & \mathbf { T U } _ { \mathbf { A } } & \mathbf { M U } _ { \mathbf { A } } & \mathbf { M U } _ { \mathbf { A } } \mathbf { P } _ { \mathbf { A } } & \mathbf { T U } _ { \mathbf { B } } & \mathbf { M U } _ { \mathbf { B } } & \mathbf { M U } _ { \mathbf { B } } / \mathbf { P } _ { \mathbf { B } } \\\hline 0 & 0 & & & 0 & & \\1 & 16 & & & 30 & & \\2 & 30 & & & 50 & & \\3 & 40 & & & 58 & & \\4 & 46 & & & 64 & & \\\hline\end{array}$$ (a) Fill in the empty columns of the table.
(b) You have purchased 2 units of good A and 1 unit of good