Suppose a utility maximizing consumer, with an income of $9, has the following utility schedule for two commodities X and Y.

Q (x,y) 0 1 2 3 4 5 6

TUx 0 10 18 24 28 31 33

TUy 0 8 15 21 26 30 33

(a)Find the combination of both commodities the consumer would purchase given that the prices of X and Y are $2 and $1 respectively.

(b)Suppose the price of commodity X falls to $1, determine the combination of both commodities the consumer will buy in order to maximize utility.

(c)Draw two budget lines that correspond to the two market situations

(Px = $2, Py = $1 Income = $9) and (Px = $1, Py = $1, Income = $9) and insert indifference curves to reflect the consumer choices.