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2. Sam has $405 each year to spend on Pizza and Tacos. Pizza costs $3 per slice and Tacos cost $2 per slice. Sam also
2. Sam has $405 each year to spend on Pizza and Tacos. Pizza costs $3 per slice and Tacos cost $2 per slice. Sam also has a utility function of U = PT2, where P is slices of pizza per year and T is Tacos per year. Draw Sam's Budget constraint. Solve for Sam's optimal consumption bundle for the year. 3. Luke has $50 for entertainment spending money each week once he pays all his bills. Assume he lives in a sleepy little town with only 2 options for entertainment movies and golfing. A movie costs $10, while golfing costs $25. Also, assume Luke's weekly utility function is U = M + 2G, where M in the number of times he goes to a movie and G is the number of times golfing. Using the utility function, calculate Luke's marginal rate of substitution (MRS) as well as the marginal rate of transformation (MRT) between the two goods. What is Luke's optimal consumption bundle each week? What type of consumer's optimal solution is this known as
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