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Question: you are choosing between two goods x and y and...

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You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. Units of X MUx 23 16 12 MUy 18 16 14 10 Units ofY 2 4 4 4 2 4 Instructions: Enter your answers as whole numbers. a. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? units units

b. What total utility will you realize? c. Assume that, other things remaining unchanged, the price of X falls to $1.00. What quantities of X and Y will you now purchase? units units d. Using the two prices and quantities for X, derive a demand schedule (a table showing prices and quantities demanded) for X Instructions: Start with the highest price first. Price Quantity Demanded

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