Microeconomics 20th Edition by Campbell McConnell, Stanley Brue,Sean Flynn

Exercise 5

You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table to the right. 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 (a table showing prices and quantities demanded) for X.