X 0 1 2 3 34 5 U(X) 0 12 22330 26 Y 0 1 2 3 4 5 V(Y) 0 20 32 40 44 46

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X 0 1 2 3 34 5 U X 0 12 22330 26 Y 0 1 2 3 4 5 V Y 0 20 32 40 44 46 1 (14.24 KiB) Viewed 12 times

Steve has a weekly income of R10, all of which he spends on goodX and good Y. The price of X is R1 and the price of Y is R2. Hisutility from consuming these is U(X)+V(Y). The utility from each ofthe goods is given by the table above:
a) At what combination of X and Y does he maximize hisutility?
b) Suppose the price of X increases from R1 to R2, at whatcombination will he maximize his utility?
c) Draw the demand curve for Steve, and explain the factors thatwill shift this demand curve.
X 0 1 2 3 34 5 U(X) 0 12 22330 26 Y 0 1 2 3 4 5 V(Y) 0 20 32 40 44 46