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Please answer both problems! MUx Px MUX MUy 5. (5 points) Explain, in your own words, why utility is optimized where or MUY PY Px

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Please answer both problems!

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MUx Px MUX MUy 5. (5 points) Explain, in your own words, why utility is optimized where or MUY PY Px PY 6. (15 points total) Max is very peculiar about his morning coffee routine. He likes to use exactly two spoons of coffee for every six ounces of water. This give him the following utility function: U = min(2Water, 6Coffee), where Water (W) is measured in fluid ounces and Coffee (C) in spoons. The price per ounce of water is $0.05 and the price of coffee per spoon is $0.10. (a) (10 points) If he spends exactly $2 on coffee every morning, how many 8 ounce cups of coffee can he afford while utility-maximizing? How many spoons of coffee does he use in doing so? (b) (5 points) How much utility does Max get from his morning cup/s of coffee

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