1. Jacob is a Lego maniac, but he also likes Super Soaker squirt guns. The following table shows Jacob's total utility and marginal utility from Legos and squirt guns measured in utils.

Quantity of Legos	TU	Quantity of Squirt Guns	TU
0	0	0	0
1	20	1	50
2	37	2	75
3	50	3	90
4	60	4	100
5	65	5	102

1. Suppose the price of Legos is $5 per set and the price of a squirt gun is $8 per gun. Compute the marginal utility and marginal-utility-to-price ratios for Legos and squirt guns and enter these values in the table.
2. How many sets of Legos and how many squirt guns will Jacob purchase if he has $26 to spend? Carefully explain how you arrived at your answer.
3. Now suppose the price of Legos falls to $2.50 per set while the price of squirt guns stays the same. How many sets of Legos and how many squirt guns will he purchase? Show how you arrived at your answer.
4. Draw Jacob's demand curve for Legos between the prices $5 per set and $2.50 per set. Why does it have a negative slope?