5. A consumer maximizes her satisfaction by finding the highest
indifference curve that could be reached, given her budget
constraint. Consider a consumer with utility function u(X, Y). When
there is a small movement down in indifference curve, the
additional consumption of good X, will generate marginal utility
MUX. This results in a total increase in utility of MUX ∆X. At the
same time, the reduced consumption of good Y, ∆Y, will lower
utility per unit by MUY, resulting in...