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(a) Assume only Product ABC and Product XYZ are available in the market and the marginal utility for each good at different quantities is shown
(a) Assume only Product ABC and Product XYZ are available in the market and the marginal utility for each good at different quantities is shown as follows: Quantity (in units) Mar J'nal Utili (iii) (iV) Based on the table above, explain and illustrate the law of diminishing marginal utility. (4 marks) Assume the prices of both products are RMlO per unit respectively. Determine the quantities of Product ABC and Product XYZ that Cayden should purchase to maximise his utility. (6 marks) Determine the income needed for Cayden to purchase the combination of goods in part (ii). (2 marks) Based on the answer in part (ii), calculate the total utility that will be enjoyed by Cayden. (2 marks) Based on the answer in part (ii), explain how Cayden will alter his consumption to attain utility maximisation, if the price of Product ABC increases from RM 1 0 to RM12r (4 marks)
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