1. Anita consumes both pizza and Pepsi. The following tables show the amount of utility she obtains from different amounts of these two goods: Slices of Pizza 4 5 6 7 Utility from pizza 115 135 154 171 Cans of Pepsi Utility from Pepsi 63 5 6 7 8 75 86 96 I a. Suppose Pepsi costs $.50 per can, pizza costs $1 per slice, and Anita has $9 to spend on food and drink. What combination of pizza and Pepsi will maximize her utility? b. If MU/P-8 for pizza and the MU/P= 5 for Pepsi, is Anita maximizing her utility? If not, what should she do to maximize her utility 2. For each of the following, determine if the consumer is at a tangency point. If not, will the consumer prefer a market basket on the budget line with more X or more Y? MRS 10 and Px/Py=5 a. b. MRS= 5 and Px/Py=5 c. MRS 3 and Px/Py=5

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