Answer the following questions on a separate sheet of paper.  Show all calculations.

Assume that the price of pizza is $1 per slice and the price of a large Pepsi is $2.

A. Calculate the marginal utility of each unit of pizza and Pepsi.

B.    Using the prices mentioned above, calculate the marginal utility per dollar of pizza and Pepsi.

C.   With $20 to spend per week, what amount of pizza and Pepsi will maximize satisfaction.  (Find the utility-maximizing combination of pizza and Pepsi).

D.   What is the total amount of utility from the combination computed in part C, i.e. the total utility from the pizza slices plus the total utility from Pepsis.

E.    Given your answer in C, explain why buying two more slices of pizza
      and 1 less Pepsi makes the person worse off.  (Hint:  Apply the
      concepts of marginal benefit & marginal cost.)