Question 1(13 points): Mr. Milgrom has a monthly income of $50 that he spends on two goods Meat (M) and Potatoes (P). His utility function is given by the equation: U(M, P) = 2M + 3P. a) (2 points) What is his marginal utility from Meat? What is his marginal utility from Potatoes? b) (2 points) What is the Marginal Rate of Substitution of Meat for Potatoes? 0) (3 points) Now suppose the price of Meat is $2.5 a pound and the price of Potatoes is $2 a pound. To maximize his utility what combination of Meat and Potatoes should Mr. Milgrom choose? You must explain how you arrived at your answer. (1) (3 points) Now suppose Mr. Milgrom's income increases to $60. What is his utility maximizing bundle now? Again, you must explain your answer. e) (3 points) Now suppose the price of Meat decreases to $2 per pound, while the price of Potatoes remains at $2 a pound. What is the utility maximizing combination of Meat and Potatoes now? You can assume his income to be $60. Again, you must explain your