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EU a microecono... 0 5555 production-gradescope-uploads.s3-us-west-2.amazonaws.com C, [1\" + (3 Question 2:... I: WORTH THE... Q 2 Demo: 221... Q] Tutorial 04 |... 8 Solution To... 3 2 Demo: 221... mtps://prod... ..|| ECON 1100... Question Suppose Ginney has preferences over two goods Ton-Tongue Toffees (t) and Fizzing Whizbees (w) wich can be described by the follwing utility function. U (t, w) = x/E + 11) She originally faces prices pt = 1 and pw = 1 with income Y = 25. Part a) Find the utility maximizing quantities of t and w, given her income and the prices. And calculate the utility at this bundle. Sketch and label this utility maximizing bundle graphically with the quantity of Ton-Tongue Toffees (t) on the yaxis and Fizzing Whizbees (w) on the xaxis. Part b) Suppose the price of 11) increases to p11,. Find the new utility maximizing bundle, assuming all else stays constant. piu=2 Part c) Quantify the size of the substitution effect resulting from the price change noted in Part b) measured in terms of the change in w. Part (1) Quantify the size of the income effect resulting from the price change noted in Part b) measured in terms of the change in w. u Help - Q&A f