Question
Please Answer it ASAP..... Do the calculations assuming the two consumers have same endowments of 1000 pounds of food each in period one and 1000
Please Answer it ASAP.....
Do the calculations assuming the two consumers have same endowments of 1000 pounds of food each in period one and 1000 pounds each in period two. So, there are two thousand pounds of food in total in the first period and the same amount in the second period. The consumers are impatient and have preferences. I am stuck this is the given information i have so far and need help thanks
Please write responses to the following items. No rounding need all digits.
Write the market clearing equation for period
Solve the market clearing equation for P2 assuming, without loss of generality,that P1 = $1
Calculate the amount of each good consumed by Xavier and verify that he can afford it.
Explain why Xavier gives up food in period one to receive food in period two, even though he is impatient.
Calculate the interest rate consistent with the prices p1 and p2
Czp2.49(1000p1+1000pz)p1=W2.48(1000p1+1000pz) Penod 1: . 51(1000+1000p2)+.52(1000+1000p2) =[.511000+=1000+1000521000]pz=1000+1000.5110005210491000+.481000 pz=0.491000+0.481000 pz=0.511000+0.5210000.491000+0.481000 =1010.941176 pz=1010.941176 Czp2.49(1000p1+1000pz)p1=W2.48(1000p1+1000pz) Penod 1: . 51(1000+1000p2)+.52(1000+1000p2) =[.511000+=1000+1000521000]pz=1000+1000.5110005210491000+.481000 pz=0.491000+0.481000 pz=0.511000+0.5210000.491000+0.481000 =1010.941176 pz=1010.941176
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