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The utility that Mark receives by consuming good X and good Y is given by u(X,Y)...

The utility that Mark receives by consuming good X and good Y is given by u(X,Y) = XY.

1) Draw the indifference curve associated with a utility level of 12 and the indifference curve associated with the utility level of 36.

2) Suppose that X costs $1 per unit and Y $3 per unit. Mark has $12 to spend on X and Y. Graph the budget line that he faces.

3) Derive Mark’s demand functions. What is the utility-maximizing choice of X and Y (solve the problem both mathematically and graphically).

Just the answer to #3 please.

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