1. 4. Suppose a particular consumer has 8 birr to be spent on two goods, A and B. The unit price of good A is 2 birr and the unit price of B is 1 birr. The marginal utility (MU) she gets from
   
   consumption of the goods is given below.
   
   Quantity
   
   M*U_{A}
   
   M*U_{B}
   
   1
   
   36
   
   30
   
   2
   
   24
   
   22
   
   3
   
   20
   
   16
   
   4
   
   18
   
   12
   
   5
   
   16
   
   10
   
   6
   
   10
   
   4
   
   A) Based on the cardinal analysis, what is the combination of the two goods that gives maximum utility to the consumer?
   
   B) What is the total utility at the utility maximization level?

Consider a rational utility maximizing consumer who is choosing between two goods clothing (C) and food (F), where the total utilities of the two goods are independent so that total utility (U) = Utility from clothing + Utility from food. Assume that the utility from these items is outlined below:

Assume further that the price of clothing is $5 per unit and the price of food is $1 per unit, and that the consumer has $18 to spend on the two goods in a given period. Carefully explain how the rational utility maximizing consumer would allocate his/her expenditures on the two goods.