In world of two goods, X and Y, a rational consumer is observed to consume 10 units of X and 20 units of Y. Assume further that the price of X is $10 and the price of Y is $20, and that the consumer has a fixed amount of money to spend on both goods.

a.If the the marginal utilities of X and Y at that level of purchase are:

MUx = 100 and MUy = 50, respectively. Is the consumer in a state of equilibrium? Why or why not? Explain.

b.If you answered NO to the above, suggest another combination of X and Y that may bring the consumer into equilibrium, assuming no change in the consumer's level of expenditure remains the same. Explain your choice.