Please find attached problems
Assume that an individual consumes two goods, X and Y. The total utility of each good is independent of the rate of consumption of the other good. The price of X and Y are $40 and $60 respectively. Use the following table of total utilities to answer the following questions. Good Total Utility (X) Total Utility (Y) 1. 20 45 2. 38 78 3. 54 108 4. 68 135 5. 80 159 6. 90 180 a. The marginal utility of the fourth unit of Y___________. b. The marginal utility of the fifth unit of X is ___________. c. The marginal utility per dollar spent on the third unit of X is __________. d. The marginal utility per dollar spent on the second unit of Y is __________. e. If the consumer has $420 to spend, ______ unit of X and _______ units of Y maximize utility subject to the budget constraint. Explain. f. If the consumer has $220 to spend, _______ units of X and _______ units of Y maximize utility subject to the budget constraint. Explain.
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