| Quantity of Good X (units) | Marginal Utility (Good X) | Quantity of Good Y(units) | Marginal Utility (Good Y) |
| 1 | 32 | 1 | 24 |
| 2 | 28 | 2 | 20 |
| 3 | 24 | 3 | 16 |
| 4 | 20 | 4 | 12 |
| 5 | 16 | 5 | 10 |
| 6 | 14 | 6 | 10 |
| 7 | 12 | 7 | 9 |
| 8 | 10 | 8 | 8 |
Consider an individual who is deciding on how much of good X and good Y to buy in order maximize her utility. The individual has $20 to spend on the two goods and the price of Good X is $2 per unit and the price of Good Y is $4 per unit. How many units of good X will this individual buy?
Answer : 8 units of Good X is to be consumed to maximise utility.
| Good X | Marginal utility | Total utility | Good Y | Marginal utility | Total utility |
| 1 | 32 | 32 | 1 | 24 | 24 |
| 2 | 28 | 60 | 2 | 20 | 44 |
| 3 | 24 | 84 | 3 | 16 | 60 |
| 4 | 20 | 104 | 4 | 12 | 72 |
| 5 | 16 | 120 | 5 | 10 | 82 |
| 6 | 14 | 134 | 6 | 10 | 92 |
| 7 | 12 | 146 | 7 | 9 | 101 |
| 8 | 10 | 156 | 8 | 8 | 109 |
Given that budget of individual is $20 and price of Good X is $2 per unit and Good Y is $4 per unit.
| Consumption bundle (X,Y) | Total Utility |
| (8,1) | 156+24=180 |
| (6,2) | 134+44=178 |
| (4,3) | 104+60=164 |
| (2,4) | 60+72=132 |
| (0,5) | 82 |
The above given table shows the combinations of Good X and Good Y that is affordable for the individual given her budget constraint. And it is clear that the total utility is maximum when 8 units of Good X and 1 unit of Good Y is consumed and is 180.
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