Question 2 Sophie spends her income between two goods: Good 1: and Good 3;. Her utility function is given by 141', y) = 111(3) + ln(y). 'When she has an income of M0 = 8, and the prices are P: = 2 and P: = 2, her optimal bundle is (330,93) = (212). Hence, her maximal utility is u" = 141:\