Problem
Jim's preferences over cookies (x) and other goods ( y) are given by U(x, y) xy with associated marginal utility functions MUx = y and MUy = x. His income is $20.
a) Find Jim's demand schedule for x when the price of y is Py = $1.
b) Illustrate graphically the change in consumer surplus when the price of x increases from $1 to $2. 5.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.