Use the following information to answer the next two questions.

Your classmate Ryan is consuming beef pie. The marginal utility he receives from each additional pie is shown below:

Pies: 1,2,3,4,5,6,7

Marginal Utility: 40,30,20,10,5,0,-1

6. Ryan receives 1 util of marginal utility from consuming an additional bundle of generic goods from a general store, which costs $1 per bundle. To maximise his utility, how many beef pies should Ryan consume given the following prices of a beef pie: $50, $0?

A. 1, 7

B. 0, 7

C. 1, 6

D. 0, 6

E. None of the above

7. In your previous answer, the optimal amount of beef pies varied depending on the price of a beef pie. This was due to:

A. Substitution Effect

B. Income Effect

C. the fact that beef pies are normal goods in this example

D. the fact that beef pies are inferior goods in this example

E. None of the above

Could you explain these two questions in more detail? Thanks