Economics Homework Help

I’m working on a macro economics multi-part question and need an explanation to help me understand better.

Charlie spends his budget on purchasing video games and peanut butter sandwiches. Currently, he can get 12 peanut butter sandwiches for every video game he purchases.

1. Charlie just got a raise at work! Because of this, he has doubled his budget for video games and peanut butter sandwiches. Charlie’s friend, however, thinks that he should save some of the money – after all, wasn’t he happy with his initial allocation of video games and peanut butter sandwhiches? Do you agree or disagree with Charlie’s friend? Explain.
2. Due to a fruit shortage, the price of jelly skyrockets. Charlie is nervous that he won’t be able to buy as many peanut butter sandwiches! Charlie believes he should start buying more video games to keep his happiness (utility) high. Do you agree or disagree with Charlie? Explain.