5. [10] Consider a two-consumer exchange economy with uncertainty. Consumers can buy and sell claims on consumption z; in state i = 1, 2 at unit price p;, which is realised with probability qi. There are 2 units of the consumption good in state 1, which are entirely owned by consumer A, and 2 units of the consumption good in period 2, which are entirely owned by consumer B. Consumer A is risk-averse: her utility over money consequences I" is u4(x4) = Ing. Consumer B is risk-neutral: her utility over money consequences I" is (a) [2] Illustrate this economy in an Edgeworth box. (b) [2] Is there idiosyncratic risk in this economy? (c) [2] Is there aggregate risk in this economy? (d) [2] Derive a competitive equilibrium for this economy. (e) [2] Describe the consumers' equilibrium insurance plans in this economy. Is insurance actuarially fair? Are the consumers ever fully insured? Interpret your