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The table below shows Max's marginal utility (measured in utils) at various quantities of goods X and Y, which are assumed to be infinitely
The table below shows Max's marginal utility (measured in "utils") at various quantities of goods X and Y, which are assumed to be infinitely divisible (i.e., they can be consumed in fractions of a unit). The price of good X is $4 (Px - $4) and the price of good Y is $5 (Py = $5). Qx MUX QY MUY 20 160 22 260 25 152 26 240 30 144 30 220 35 136 34 200 40. 128 38 180 45 120 42 160 50 112 46 140 55 104 50 120 60 96 54 100 65 88 58 80 70 80 62 60 75 72 66 40 80 64 R 70 20 Suppose that Max's income is $350 and he buys 30 units of X and 46 units of Y. If Max buys $1's worth more of good X and $1's worth less of good Y, then his total utility will O decrease by 4/5 - 0.8 utils. O increase by 5/4 -1.25 utils. O increase by 4 utils. O increase by 12 utils. decrease by 8 utils. O not change because he is maximizing his utility at the bundle (30X,46Y). O increase by 8 utils.
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