Assume that a CONSUMER FACES Prices of $20 and $20 FOR GOOD X and GOOD Y, and

the consumer has a Utility function given

by U(X,Y) = xy.

a) How much income (M) he/she should receive to obtain Utility of 400 units.

b) Illustrate the solution.

Assume that a CONSUMER has an income of $200. The price of good Y is $10. The consumer

has a Utility function given by U(X,Y) = xy.

c) What should be the price of Good X, or (Px), so the consumer decides to buy 10 units of X?

d) Illustrate the solution.