Q: If u(x,y)=x+y, Px=4, and Py=5, What is the minimum income needed to achieve a utility of 10?
A: Comparing MUx/Px which is 1/4 to MUy/Py which is 1/5, we know that this person always wishes to buy all x an no y. Therefore for u(x,y)=10 it must be that x+y=10 and we already found that y=0. Therefore, x=10. As, Px=4, x=10, Py=5, and y=0 the minimum income is 4*10+5*0=$40.