1.Assume that the price of oranges is $2 and the price of starfruit is $1.You have $10 of income to spend on both goods, and you intend to spend the entire amount.Note that MU stands for marginal utility.

Q of orangesMU from orangesQ of starfruitMU of starfruit

1$201$12

216210

31238

4846

5454

6062

To maximize total utility, you would consume _____ oranges and _____ starfruit.

Question 20 options:

5; 0

4; 2

5; 5

2; 6

3; 4

2.The budget linegraphclearly illustrates an increase in the price of Good Y.

True or False