b. Suppose that preferences for the consumer are described by the utility function U = CH\

b. Suppose that preferences for the consumer are described by the utility function U = CYII-Y, where y is between 0 and 1. Further suppose that T = 0. Characterize the optimal consumer bundle and then illustrate it in a diagram. In the same diagram, illustrate how the consumer's optimal bundle changes when the real wage increases. Which dominates, the income effect or the substitution effect (or neither)? Finally, characterize the consumer's optimal supply of labor and illustrate it in a new diagram (a labor supply curve). b. Suppose that preferences for the consumer are described by the utility function U = CYII-Y, where y is between 0 and 1. Further suppose that T = 0. Characterize the optimal consumer bundle and then illustrate it in a diagram. In the same diagram, illustrate how the consumer's optimal bundle changes when the real wage increases. Which dominates, the income effect or the substitution effect (or neither)? Finally, characterize the consumer's optimal supply of labor and illustrate it in a new diagram (a labor supply curve).