Question

In: Economics

Each unit of good X costs $2, and each unit of good Y costs $2. The...

Each unit of good X costs $2, and each unit of good Y costs $2. The following table contains information on Felix’s utility from goods X and Y.

Units of Good X

Total Utility of Good X

Units of Good Y

Total Utility of Good Y

(Utils)

(Utils)
1 28 1 22
2 54 2 40
3 78 3 52
4 100 4 60
5 120 5

64

Suppose Felix spends a total of $10 on good X and good Y each week.

To maximize his utility, Felix should purchase __________of good X and ____________ of good Y.

Given his budget, the maximum total utility Felix can obtain from the two goods is __________utils.

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
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