Joanne's utility function is U 5X +3Y. Assume Joanne has $100 to spend on goods X and Y, the price of good X, Px, is $10 and the price of good Y, Py, is $4.
a. What is Joanne's marginal utility of X?
b. What is Joanne's marginal utility of Y?
c. What is Joanne's marginal rate of substitution between X and Y?
d. What does this marginal rate of substitution mean?
e. Draw several sample indifference curves for Joanne. Write down Joanne's budget constraint algebraically, and draw an illustration of her budget constraint.
g. Find Joanne's optimal consumption bundle