Suppose that MUX = Y and MUY = X. The prices of good X and good Y are $5 and $4, respectively. How many units of good X does the consumer buy if she has $410 of income?

She consumes 41 units of good X.

Explanation:

Utility Maximization:

The maximum utility that a consumer derives from the use of a specified amount of a good or service.

Consumer M aximise the utility when following condition is satisfied.

MUx / MUy = Px / Py

Y / X = 5 / 4

4Y = 5X

According to given sitation the budget constraint is

Px ( X ) + Py ( Y )= M

5X + 4Y = 410

Using 4Y = 5X

thus, 5X + 4Y = 410

5X + 5X = 410

10X = $410

X = 41.

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

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