1. Suppose two individuals [Smith E: Jones] each have It) hours of labor to devote to produtjng either ice cream (15:) or chicken soup (y). Smid'i's utility function is given by Us : ray}, whereas Jones' is given by U 1- : X'Ey'5_ The individuals do not care whether they produce '3. or y, and the production function for each good is given by x =2! St" :3. where l is the total labor devoted to production of each good. Using this information, o. What must the price ratio, PEP? be? 1:. Given this price ratio, how much 3-: and y will Smith and Jones demand? (Hint: Set the average wage equal to 1 here.) c. How should labor be allocated between it an y to satisfy the demand calculated in Part (b)