Suppose a consumer's preferences are given by U(X,Y) = X*Y2.Thus, the marginal utility of X, MUx =
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Suppose a consumer's preferences are given by U(X,Y) = X*Y2.Thus, the marginal utility of X, MUx = Y2and the marginal utility of Y, MUy = 2XY.Suppose the price of good Y is $1, and the price of good X is $3.Sketch the income-consumption curve for the following values of M:
- M = $90
- M = $180
- M = $270
carefully draw the budget constraints associated with each of the income levels, and indicate the bundle that the consumer chooses in each case.Also, be sure to label your graph accurately.
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