The table below gives an
individual’s marginal utility schedule for good X and good Y.
Suppose that X and Y are the only goods available, the price of X
and the price of Y are $1 and the individual’s income is $8 per
time period and is all spent.

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Question: The table below gives an individual’s marginal utility schedule for good X and good Y. Suppose th…
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Q

MUx

MUy

1

11

19

2

10

17

3

9

15

4

8

13

5

7

12

6

6

10

7

5

8

8

4

6

Totals

60

100

a.           
Indicate how this individual should spend his/her
income in order to maximize total utility. Justify your
answer.

b.           
What is the total amount of utility received by
the individual when in equilibrium? Justify your
answer.

c.           
State mathematically the equilibrium condition for
this individual.

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