Consider a person whose preferences can be represented by the utility functionU=q1+q2

wherelies strictly between zero and 1. Given these preferences:

1. Find the optimal choice of each good ifY=100 P1=2 P2=4and=0.5
2. Give an economic interpretation for the parameterfrom the utility function (Hint: You might want to consider how the choice changes for a different price at different values of the parameter).