1. Imagine you consume two goods, K and L, and your utility
function is U = K1/3L2/3. Your budget is $120; PK = $6; PL = $9.
So, the optimal bundle for you to consume is (K = 6.6667, L =
8.8889). Now, suppose the price of good K increases to $9. What is
the new optimal K for you to consume?
2. Imagine you consume two goods, K and L, and your utility
function is U = K1/3L2/3. Your...