Q1. Mark consumes only cookies and books. At his current consumption bundle, his marginal utility from books is 10 and from cookies are 5. Each book costs $10, and each cookie costs $2. Is he maximizing his utility? Explain. If he is not, how can he increase his utility while keeping his total expenditure constant?

Q2. In the country of Sildavia, a market basket of goods and services cost $ 130 in 2003, $ 140 in 2004, and $160 in 2005. Based on this information and considering 2003 as the base year, inflation from 2003 to 2005.