MRS and utility maximization Suppose your classmate Kyoko loves to eat dessertso much so that she allocates her entire weekly budget to peach cobbler and pie. The price of one bowl of peach cobbler is $1.50, and the price of a piece of rhubarb pie is $4.50. At her current level of consumption, Kyoko's marginal rate of substitution (MRS) of peach cobbler for pie is 5. In other words, Kyoko is willing to sacrifice five bowls of peach cobbler for one piece of pie per week. Does Kyoko's current consumption bundle maximize her utility? That is, does it make her as well off as possible? If not, how should she change it to maximize her utility? Kyoko's current bundle maximizes her utility, and she should keep it unchanged. Kyoko could increase her utility by buying less peach cobbler and more pie per week. Kyoko could increase her utility by buying more peach cobbler and less pie per week