Assume that Inayah’s consumption of milk and cookies give her following level of utility: Quantity MU milk MU cookies 1 400 450 2 350 200 3 200 150 4 100 100 5 70 60 6 30 30 7 0 0 Find the optimal level of consumption. Find the consumer equilibrium using the two-dimensional labeled diagram.

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.