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utility function over consumption today (c1) and consumption tomorrow (c2): U(c1, c2) = log(c1) + blog(c2)...

utility function over consumption today (c1) and consumption tomorrow (c2):

U(c1, c2) = log(c1) + blog(c2) where 0 < b < 1 and log denotes the natural logarithm

Let p1 denote the price of c1 and p2 denote the price of c2. Assume that income is Y. Derive Marshallian demand functions for consumption today (c1) and consumption tomorrow (c2). What happens to c1 and c2 as b approaches 0? {Math hint: if y = log(x), dy/dx = 1/x}

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