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In a two-commodity world, suppose that Tom's preference can be characterized by the utility function, U0(Y, Z) = Y 321:2, and Tim's utility is given

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In a two-commodity world, suppose that Tom's preference can be characterized by the utility function, U0(Y, Z) = Y\" 321:2, and Tim's utility is given by UI(Y, Z) = 34 In Y + 51 In Z + 2021. Good Y costs $2 per unit, and Z costs $3 per unit. Both Tom and Tim have an income of $25. a. Solve step-by-step for the optimal consumption bundles of Tom and Tim. b. When you compare their optimal choices of goods Y and Z, what do you notice, and why? In particular, what is the exact relationship between their utility functions

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