1. You're having a party, and need to buy beer ($5 a unit) and pizza ($10 a unit). You have $100.
   1. Suppose pizza and beer are perfect complements, what would you buy?
   2. Suppose pizza and beer are perfect substitutes, what would you buy?
2. Martha receives utility from consuming two commodities: x = food & y = milk. Her preferences over x and y are given by the following utility function: U(x, y) = 4 ln(x) + 6 ln(y). Martha's income is $10. The price of milk is $3 and the price of food is $2. Note: ln(x) = loge(x)
   1. Compute the marginal rate of substitution of food (x) for milk (y).
   2. What is Martha's budget constraint?
   3. Find the optimal consumption of food that Martha would choose.
   4. Suppose that the price of the food increases to $4. What is the optimal bundle of goods for Martha?