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B. Suppose the set-up is as described in A and A(a), with y = 100, and let tastes be described by the utility function u(
B. Suppose the set-up is as described in A and A(a), with y = 100, and let tastes be described by the utility function u( C1, C2) = CIC2. a. Is it true that, given these tastes, the entire inside of the Edgeworth Box is equal to the area of mutually beneficial allocations relative to the endowment allocation? b. Let p be defined as in A(c). Derive the parent and child demands for c, and c2 as a function of p. c. Derive the equilibrium price p* in the case where there is one parent and one child. d. What is the equilibrium allocation of consumption across time between parent and child? e. Suppose there are two children and one parent. Repeat (c) and (d). f. Suppose there are two parents and one child. Repeat (c) and (d). g. Suppose there are two children and two parents. Repeat (c) and (d)
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