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1. In a two-commodity world, suppose that Winnie's preference can be characterized by the utility function, UW(X, Y) = ln X + lnY + 2018, and Tigger's utility is given by UT(X, Y) = X^(1/3)Y^(1/3). Good X costs $2 per unit, and Y is a composite good. Both Winnie and Tigger have an income of $24.
a. Solve step-by-step for the optimal consumption bundles of Winnie and Tigger.
b. What is the exact relationship between Winnie's and Tigger's utility functions? How can this relationship explain what you find in part (a)?
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