Suppose that you are organizing a birthday party and you have a budget of $100. You can buy some combinations of chips and coke with that $100. Currently, the marginal utility you receive from the last unit of chips is 50 and the price of chips is $5 and the marginal utility you receive from the last unit of coke is 30 and the price of coke is $1. Based on this scenario, discuss the following

• Describe what the terms utility and marginal utility mean in economics.
• Explain whether you are currently maximizing your utility.
• Describe the process by which you can maximize your utility in this example.
• Discuss how we can derive a demand curve for chips and coke.