1.Suppose a particular consumer has 8 birr to be spent on two goods, A and B. The unit price of good A is 2 birr and the unit price of B is 1 birr. The marginal utility (MU) she gets from consumption of the goods is given below.

Quantity

TUA

TUB

1

36

30

2

24

22

3

20

16

4

18

12

5

16

10

6

10

4

a.Based on the cardinal analysis, what is the combination of the two goods that gives maximum utility to the consumer?

b.What is the total utility at the utility maximization level?