6. Suppose that the price of good X is $1 and the price of good Y...
6. Suppose that the price of good X is $1 and the price of good Y is $1, and that income is $7. The following tables show the marginal utility schedules for X and Y:
Good X: Good Y:
Qx MUx Qy MUy
1 15 1 12
2 11 2 9
3 9 3 6
4 6 4 5
5 4 5 3
6 3 6 2
7 1 7 1
How much of good X and how much of good Y should the individual purchase to maximize utility? Explain how you know. (Hint: There are 2 conditions that must be satisfied.)
Homework Answers
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6. Suppose that the price of good X is $1 and the price of good
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