The following table shows William's utility from consuming slices of pizza and cans of Sprite. Slices of Pizza Total Utility from Pizza Marginal Utility from Last Slice Cans of Sprite Total Utility from Sprite Marginal Utility from Last Can 0 0 - 0 - - 1 36 36 1 30 30 2 66 30 2 55 25 3 90 24 3 75 20 4 108 18 4 90 15 5 120 12 5 100 10 6 126 6 6 105 5 1. Suppose William has $33.00 per week to spend on pizza and Sprite. The price of a slice of pizza is $6.00 and the price of a can of Sprite is $5.00. (a) If William wants to maximize his utility, how many slice(s) of pizza and can(s) of Sprite should he buy according to the information on the table above? How does the utility maximizing rule apply in this scenario? (b) Suppose the price of pizza increased from $6.00 per slice to $9.00 per slice. Explain (in terms of the income effect and substitution effect) how this change in price would alter William's choice of the amount of pizza and Sprite to purchase. 2. Why does marginal physical product decline at a fast food outlet (like McDonald's) when more employees are hired? What are the fixed input constraints that limit worker productivity?

The following table shows 1I.I"l.|"illiam's utility from consuming slices of pizza and cans of Sprite. Slices of Total Utility Marginal Utility Cans of Total Utility Marginal Utility Pizza from Pizza from Last Slice Sprite from Sprite from Last Can 0 0 - 0 - 1 36 36 1 30 30 2 66 30 2 55 25 3 90 24 3 F5 20 4 108 1B 4 90 15 5 120 12 5 100 10 6 126 6 6 105 5 1. Suppose William has $33.00 per week to spend on pizza and Sprite. The price of a slice of pizza is $6.00 and the price of a can of Sprite is $5.00. [a] If William wants to maximize his utility, how many slice{s} of pizza and canisJ of Sprite should he buy according to the information on the table above? How does the utility maximizing rule apply in this scenario? [lo] Suppose the price of pizza increased from $6.00 per slice to $9.00 per slice. Explain [in terms of the income effect and substitution effect) how this change in price would alter William's choice of the amount of pizza and Sprite to purchase. 2. Why cloes marginal physical product decline at a fast food outlet (like McDonald's} when more employees are hired? What are the xed input constraints that limit worker productivity