Question: A consumer has a utility function U(x1, x2) = x1x2 + x1 + x2. Her income is $30, while prices of goods 1 and 2 are $8 and $2, respectively.
(a) Find the optimal combination of goods 1 and 2 that will maximize the consumer's utility.
(b) What is the maximum level of utility, given the budget constraint?
(c) What is the value of the marginal utility of money income?