You are choosing between two goods, X and Y, and your marginal utility from each is as shown below.

Units of X MU Units of Y MU
1 20 1 16
2 16 2 14
3 12 3 12
4 8 4 10
5 6 5 8
6 4 6 6

Instructions: Enter only whole numbers for your numeric answers.

If your income is $18.00 and the prices of X and Y are $4.00 and $2.00, 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 $2.00. 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.