13.7 Use the computer algorithm discussed in footnote 19 to examine the consequences of the following changes to the model in Example 13.4. For each change, describe the final results of the modeling and offer some intuition about why the results worked as they did.

a. Change the preferences of household 1 to U = (-4)

b. Reverse the production functions in Equation 13.44 so that x becomes the capital-intensive good.

c. Increase the importance of leisure in each household's utility function. Analytical Problems