1. Suppose two individuals (Smith 8: Jones) each have 10 hours of labor to devote to producing either ice cream (x) or chicken soup (y). Smith's utility function is given by Us =x'3y'7, whereas Jones' is given by _ .5 .5 U} x y . The individuals do not care whether they produce it or y, and the production function for each good is given by x =21 y =31, where 1 is the total labor devoted to production of each good. Using this information, a. What must the price ratio, Pic/Py be? b. Given this price ratio, how much It and y will Smith and Jones demand? (Hint: Set the average wage equal to 1 here.) c. How should labor be allocated between x an y to satisfy the demand calculated in part (b)