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You are choosing between two goods, X and Y, and your marginal utility from each is shown in the following table. Units of X MUX

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You are choosing between two goods, X and Y, and your marginal utility from each is shown in the following table. Units of X MUX Units of Y MU y 1 10 1 8 8 7 W N 6 6 QUI A W N 4 5 3 5 4 2 w Instructions: Enter your answers as a whole number. a. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? units of X and units of Y b. What total utility will you realize? utils c. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? units of X and units of Y d. Using the two prices and quantities for X, complete the table to derive the demand schedule (a table showing prices and quantities demanded) for X. Instructions: Start with the highest price first Quantity Price of X Demanded of X $ S

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