2. Lisa enjoys apples and grapes.The extent of her satisfaction is revealed by the following utility schedule:

Pounds of

Apples

Total

Utility

Pounds of

Grapes

Total

Utility

1

8 units

1

12

2

12

2

20

3

15

3

24

4

17

4

26

a) Compute Lisa's marginal utility for each commodity.

b)Assume that the price for both apples and grapes is $2 per pound.Given a budget of $6, how many pounds of each should Lisa buy to maximize her total satisfaction?Show the maximum satisfaction formula used to get your answer.

c) Now suppose the price per pound of apples is $1, half the price of grapes.With a $6 budget, how many pounds of each commodity would maximize her satisfaction?Justify your answer.

d) Based on the above information, plot Lisa's demand curve for apples.