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3. Suppose that at Marcus' current consumption choice, he is willing to give up 4 sausages to get an extra steak to maintain his utility

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3. Suppose that at Marcus' current consumption choice, he is willing to give up 4 sausages to get an extra steak to maintain his utility level. In other words, his Marginal Rate of Substitution (MRS) is 4. Suppose also that the price of a steak is $15, and the price of a sausage is $5. 3.1 Is Marcus maximizing utility at the current consumption choice? Why? 3.2 Assume that all his income of $90 is spent on stakes and sausages, graph Marcus' budget constraint in the following figure. Indicate both Y-intercept and X-intercept on the budget constraint. Also, show the point of his current consumption. Sausages Steaks 3.3 To maximize utility, how should Marcus adjust his consumption between stakes and sausages? Explain

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