John gets a weekly allowance of $20 from his parents. The only thing he has a real interest in buying is a big slice of pizza after school for $2 per slice. Below shows his marginal utility for each slice consumed.

Number of Pizza Slices Marginal Utility per Pizza Slice Marginal Utility Per Funnel Cake

1 20 50

2 12 40

3 10 32

4 6 20

5 2 12

6 0 0

7 -2 -12

8 -6 -20

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 eight 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. Put together a table that shows the marginal utility per dollar for each slice of pizza and each funnel cake (in 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?