Michael buys both Peanut Butter (P) and Jelly (J) each week. His M RS1p, or marginal rate of substitution of Jelly (J ) for Peanut Butter ( P), equa ls 0.85. The price of jelly is $2 per unit, and the price of peanut butter is $1.5 per unit.

1. Determine whether Michael is currently optimizing his budget over these two products. Justify your answer.

2. Explain whether the Michael should buy more peanut butter (P) or more j elly (J), if he is not currently optimizing his budget.