Jorge's utility is based on his consumption of two goods, Steak (x) and Truffle Fries(y). His utility function is U(x,y) =3xy + 40. If Jorge has a total annual income (M) of $900 to spend on the two goods, and the Price of steak, Px=$25.00, and the Price of Truffle Fries, Py =$5.00:

What is Jorge's utility maximizing level of steak and fries?

What is the level of Total Utility that he achieves at the utility maximizing level of steak and fries you found in 'part a' above?

What is the Marginal Rate of Substitution (MRS) at the optimal combination of steak and fries you solved for in 'Part a'? Hint: Assume that Good Y, Fries, is on the vertical axis, and Good X, Steak, is on the Horizontal axis.

Explain how we can use the utility-maximization process to start with consumer preferences and build to estimating the market demand.