The following table shows Lee’s utility from consuming ice cream cones and bottles of smartwater:

a. Lee’s friend Ed inspects this table and concludes, “Lee’s optimal choice would be to consume 4 ice cream cones and 5 bottles of smartwater because with that combination, his marginal utility from ice cream cones is equal to his marginal utility from smart water.” Do you agree with Ed’s reasoning? Briefly explain.
b. Suppose that Lee has an unlimited budget to spend on ice cream cones and bottles of smartwater. Under these circumstances, how many ice cream cones and how many bottles of smart water will he consume? (Assume that Lee cannot consume more than 6 ice cream cones or 6 bottles of smart water.)
c. Suppose that Lee has $7 per week to spend on ice cream cones and bottles of smart water. The price of an ice cream cone is $2, and the price of a bottle of smartwater is $1. If Lee wants to maximize his utility, how many ice cream cones and how many bottles of smartwater should he buy?

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Number of Ice Cream Cones 0 1 2 3 4 5 6 Total Utility from Ice Cream Cones 0 30 55 75 90 100 105 Marginal Utility from Last Cone 30 25 20 15 10 5 Number of Bottles of Smartwater 0 1 2 3 4 5 6 Total Utility from Bottles of Smartwater 0 40 75 101 119 134 141 Marginal Utility from Last Bottle 40 35 26 18 15 7 Activato W