Will and Grace are the only two people in the economy. Will’s utility is given by U^W = 100(y_W)^0.5 while Grace’s utility depends not only on her own income but also on Will’s utility. Her utility function is U^G = 100(y_G)^0.5 + 0.8U^W. The total income available in the economy is fixed and equal to $20,000. If Will and Grace have incomes of $4,000 and $16,000, respectively, what happens to each person’s utility if $1,000 is taken from Grace and given to Will? Would Grace undertake the redistribution voluntarily? Explain. If the initial incomes were reversed, would Grace be willing to give up $1,000 to Will? Explain how the concept of Pareto redistribution is relevant here?