The MU schedule for good X and Y are given. Price of both the goods is Rs 1 each and the income of Ramesh (an individual) is assumed to be Rs 5. Determine, how many units of both the commodities should be purchased by Ramesh to maximize his total utility. What is the total amount of utility received by Ramesh at the point of equilibrium ?

The MU schedule for good X and Y are given. Price of both the goods is

1.	The MU schedule for good X and Y are given. Price of both the goods is Rs 1 each and the income of Ramesh (an individual) is assumed to be Rs 5. Determine, how many units of both the commodities should be purchased by Ramesh to maximize his total utility. What is the total amount of utility received by Ramesh at the point of equilibrium ?
Answer» Solution :Ramesh should PURCHASE 4 units of good x and 1 UNIT of good Y; TOTAL utility= 46 utils