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Shirley thinks a 16-ounce can of beer is as good as two 8 ounce cans.Lorraine only drinks 8 ounces at a time and hates stale

Shirley thinks a 16-ounce can of beer is as good as two

8 ounce cans. Lorraine only drinks 8 ounces at a time and hates stale

beer, so you think a 16-ounce can is no better or worse than an 8-ounce can.

can.

(a) Write a utility function that represents Shirley's preferences between

commodity packages consisting of 8-ounce cans and 16-ounce beer cans.

Let X be the number of 8-ounce cans and Y be the number

of 16 ounce cans.

(b) Now write a utility function that represents Lorraine's preferences.

Please explain in detail your answer to the following question:

(d) Give an example of two packages of basic products that Shirley likes

the first package better than the second package, while Lorraine likes the

second package better than the first.

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