Suppose that a consumer has the MUxand MUy of Table 11.3 money income of $10 P

Suppose that a consumer has the MUxand MUy of Table 11.3 money income of $10 Px =$2 and Py=$1.

a. Describe how this consumer should spend each dollar of her $10

Units

1

2

3

4

5

6

7

8

9

10

MUx

14

12

11

10

9

8

6

4

3

1

MUy

13

11

10

8

7

6

3

2

0

-5

to purchase each unit of X and Yso as to maximize her total utility or satisfaction.

b. Show that her TU would be less if she bought one more unit of either X or Y.

Show that the equilibrium condition for utility maximization is satisfied when the consumer purchases 2Xand 6Y.