A farmer and a banker live for two periods. The banker has an endowment of grain in each period eB = (1,1), while the farmer has an endowment of grain only in the second period eF = (0,1). The banker prefers to consume today rather than tomorrow: uB(x1, x2) farmer need to consume in both periods and has a utility function uF (x1, x2) =x1+x2, while the = x1x2. Argue that the banker will only loan strictly positive amounts to the farmer if he promises to pay at least twice back as he receives. Use the fact that the equilibrium is Pareto efficient to derive the price vector. Applied Microeconomics 1 HW3 WS 2022 Use this price vector to derive the WE allocation