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please explain and show work, thank you! Problem 3 Suppose Sansa lives for two periods. Her preferences are represented as follows: u(c1,02) = /c1 +

please explain and show work, thank you!

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Problem 3 Suppose Sansa lives for two periods. Her preferences are represented as follows: u(c1,02) = \\/c1 + (LBJ-E where (:1 is today's consumption level and c2 is tomorrow's consumption level. Suppose Bob's income today is y1 = 100 and his income tomorrow is '92 = 190. Interest rate is denoted by r. 1. Write down Sansa's optimization problem including the budget set. 2. Determine Sansa's optirual consumption bundle (1221*, (22*) as a function of r

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