Exercise 2. Con-rider a tee-good quasilinear economy with I = 1 consumer and J = 1 rm. The lUnnaumer displays the following utility function: nix, m} = Ct'+f3l 111(1) +m, with or, H 3::- , and I E I} {reap m] the consumption of good! (rap. the numerairc}. The consumer owns an initial amount of the numraire equal to arm and there is no endowment in good l. Let the film's cost function be c{q) = ore, with or 2:- D. It is assumed that the consumer receives all the prot made by.' the rm. Both rm; and consumers ore price tekete. Denote the price of good I by p, and normalize the price of the numeraire. 1. Derive the consumer's and the nn'e rst-order etmditione. 2. Find the competitive equilibrium price and output of good L