a) What is the optimal quantity of pizza slices for John to buy? Explain. (For now, completely ignore the funnel cake column).

b) If John purchased 8 slices, what total utility would he enjoy?

c) The school starts selling funnel cakes for $4, which John discovers offers the marginal utility per cake shown on the same table. Complete a table that shows the marginal utility per dollar for each slice of pizza and each funnel cake (separate columns).

d) Assuming John’s parents do not allow him to use any savings, what is his optimal consumption bundle of pizza and funnel cakes? Explain.

e) At John’s optimal consumption bundle, what total utility will he gain?

 

6 Number of Pizza Slices Marginal Utility per Pizza Slice Marginal Utility Per Funnel Cake 1 2 20 50 12 40 3 10 32 4 6 5 2 12 22 20 7 -2 -12 8 -6 -20