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Question 1 Themba has a weeldy income of RH], all of which he spends on good it and good Y. The price of X is
Question 1 Themba has a weeldy income of RH], all of which he spends on good it and good Y. The price of X is R1 and the price of Y is R2. His utility from consuming these is U{X)+V(Y}. The utility from each of the goods is given by the table below: X qu Y WY} 0 D D [I 1 12 1 20 2 2i] 2 32 3 26 3 40 4 30 4 44 5 32 5 46 a) At what combination of X and Y does he maximize his utility? [20] h) Suppose the price of it increases from R1 to R2, at what combination will he maximize his utility? [201 c] Draw the demand curve for Themba. and explain the factors that will shift this demand serve. [10}
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