Final answer:
To find the utility-maximizing basket for each consumer, compare the ratio of marginal utility to price for both goods. The market equilibrium at given prices cannot be determined without more information.
Step-by-step explanation:
To find the utility-maximizing basket for each consumer, we need to compare the ratio of the marginal utility to the price of good 1 with the ratio of the marginal utility to the price of good 2. Assuming the prices of the goods are given and are the same for both consumers, we can calculate the marginal utilities for each consumer and determine their optimal choices.
For consumer 1, if p1 = 2 and p2 = 1, we can calculate the marginal utilities for each good using the information given and compare the ratios. If the ratios are equal, we have found the utility-maximizing basket for consumer 1.
Similarly, we can repeat the process for consumer 2 to find their utility-maximizing basket. This will involve calculating the marginal utilities for each good using the given information and comparing the ratios. If the ratios are equal, we have found the utility-maximizing basket for consumer 2.
Regarding whether the market is in equilibrium at the given prices, we would need more information to determine that.