18.
A consumer with $320 for the week wants to spend it on two (2) goods X and Y. The
prices of Goods X and Y are $20 and $40 respectively, Work out the correct combination
that a rational consumer would buy to maximize his total utility, from the following table.
UNIT
MU of Good X
MU of Good Y
1
9
28
2
8
26
3
7
24
4
6
22
5
5
20
6
4
18
7
3
16
8
2
12
A.
2 units of Good X with 7 units of Good Y
B.
4 units of Good X with 6 units of Good Y
C.
6 units of Good X with 5 units of Good Y
D.
8 units of Good X with 3 units of Good Y
