7. (16 points) Use the following table to answer the questions below.

Quantity ConsumedTotal UtilityTotal Utility

(per week)of Pizzaof Pepsi

000

1242668

25521200

37921632

49962016

511762316

613442556

715062712

816262736

917282664

1018182448

Answer the following questions.Assume that the price of pizza is $1 per slice and the price of a large Pepsi is $2.

A. Calculate the marginal utility of each unit of pizza and Pepsi.

B. Using the prices mentioned above, calculate the marginal utility per dollar of pizza and Pepsi.

C. With $20 to spend per week, what amount of pizza and Pepsi will maximize satisfaction?

(Find the utility-maximizing combination of pizza and Pepsi).

D. What is the total amount of utility from the combination computed in part C, i.e. the total utility from the pizza slices plus the total utility from Pepsis?

E. Given your answer in C, explain why buying two more slices of pizza and 1 less Pepsi makes the person worse off.