Saul Goodman of "Better Call Saul" fame is a busy lawyer, capable of getting any client out of a legal mess. The problem is because he is always so busy trying to serve his (shady) clients, he does not get enough time to eat proper meals during the day. So, he mostly survives oncoffee(X₁) anddonuts(X₂₎to get him through the day.

Saul's utility function reflecting his preference for coffee and donuts is given by:U(X₁, X₂) = 6X₁X_2.

His daily allowance for his meals is$36. He must spend the entire amount each day to buy his coffee and donuts, i.e., he cannot save any of it.

The price of a cup of coffee is $3 and the price of a donut is $2.

Question 1:Given Saul's utility function, what is Saul's level of utility when he consumes2 cups of coffee (X₁)and2 donuts (X₂)?

a) U = 6

b) U = 12

c) U = 24

d) U = 36

Question 2:If Saul's consumption bundle now has one extra unit of X₁(i.e., X₁is now 3 units) but X₂remains unchanged (i.e., X₂is still 2 units), what is Saul'stotal utilityfrom consuming this bundle?

a) U = 24

b) U = 36

c) U = 30

d) U = 18

Question 3:For Saul's utility function,U = 6X₁X₂, what will be thechangein Saul's utility level whenX₁increases by one unit from2 to 3(X₂still remaining unchanged at 2 units)?

a) Change in utility level is 12.

b) Change in utility level is 15.

c) Change in utility level is 24.

d) Change in utility level is 6.

Question 4:What is Saul'sbudget equation?

a) 36 = 6X1 + 4X2

b) 36 = 2X1 + 3X2

c) 36 = 3X1 + 6X2

d) 36 = 3X1 + 2X2

Question 5:Given Saul's budget and the prices, how many servings of X₁can he buy if heonly chooses to buyX₁(i.e., if he chose X₂to be 0 units)?

a) X1 = 6

b) X1 = 8

c) X1 = 10

d) X1 = 12