1.Thirsty Jack just finished his socially distanced hike in his neighbourhood.He stopped and bought 3 hotdogs and 2 cold drinks from a food truck near his home and has spent all of his budget.The marginal utility of his 2nd cold drink is (MUc=8) and his 3rd hot dog is MUd=10, and the price of cold drinks are Pc=$5.00 and hot dogs is Pd=$10.00.

Question?

a)Explain if he is maximizing his utility and how he should rearrangehis purchases to maximize his utility?

b)"If he found another $10 in his pocket and spent that at the same food truck on a hotdog, his total utility and marginal utility of hotdogs would both increase."TRUE or FALSE and Explain.?