Im unsure about this question

Question 2. In this question, we continue our exploration of intertemporal trade. On the island of Drongo, there is just one commodity, cake, and two time periods. There are two generations on this is- land. Each member of the old generation has an endowment of 1 pound of period-0 cake and no period-1 cake. Each member of the young generation has an endowment of 1 pound of period-1 cake and no period-0 cake. There are N, old people and Ny young people. The consumption bundles are the pairs (Go, c), where co is cake in period 0 and c, is cake in period 1. All genera- tions, old and young, have identical utility functions U(co. Ci) = log Co + 6 log C1. where 6 is a measure of impatience and satisfies 0