Answer question 1 to 7

//elearning.uh. Elaine, George, and Kramer all want to play Wii.I Assume that, because of the pandemic, they are all staying at their own houses, and they cannot share a single Wii. Each person needs their own to play. Assume there are five periods (1,2,3,4, and 5). After that, everyone is allowed to leave their homes, and do things that are much more fun than playing Wii. To get a Wii, someone needs to walk to the Wii store and wait on the line to buy a Wii. This comes with a one-time utility cost of 7. Each period that someone has a Wii (including the period when they buy it), they get to play with it, and they get an instantaneous utility of 10. In periods when they do not have a Wii, they can stay read a book, which gives them an instantaneous utility of 8. 1. Elaine has a long-run discount factor 8 = 0.9 and a short-run discount factor B = 0.7. From the perspective of period 1, write her discounted utility if she buys a Wii today. 2. Write out Elaine's discounted utility if she does not buy the Wii today (or any other day) 3. Will Elaine buy a Wii today (assuming this is her only chance to buy a Wii)? 4. George instead has 8 = 1 and B = .4. From the perspective of period 1, write his discounted utility if he buys a Wii today: 5. Write out George's discounted utility if he does not buy the Wii today (or any other day). 6. Will George buy a Wii today (assuming this is his only chance to buy a Wii)? 7. Kramer needs to stay home in Period 1, so he cannot buy a Wii in period 1. His only chance to buy a Wii will be Day 2. Like George, Kramer has S = 1 and B = .4. Write out his discounted utilities from buying or not buying a Wii in period 2, from the perspective of Period 1. From the perspective of period 1, does Kramer want to buy a Wii in Period 2? Play on a Wii? Play with a Wii? Maybe I don't know what a Wii is. That's fine