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PLZ HELP HERE. [10] Consider a two-consumer exchange economy with uncertainty. Consumers can buy and sell claims on consumption m;- in state i = 1,

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[10] Consider a two-consumer exchange economy with uncertainty. Consumers can buy and sell claims on consumption m;- in state i = 1, 2 at unit price p,:, which is realised with probability qr. There are 2 units of the consumption good in state 1, which are entirely owned by consumer A, and 2 units of the consumption good in period 2, which are entirely owned by consumer 3. Consumer A is risk-averse: her utility over money consequences re\" is u'4(:c\"') = 11:11:\". Consumer B is risk-neutral: her utility over money consequences :53 ' is 11,3 (:1:Ila ) = 2:3. (9.) [2] Illustrate this economy in an Edgeworth box. (b) [2] Is there idiosyncratic risk in this economy? (c) [2] Is there aggregate risk in this economy? (d) [2] Derive a competitive equilibrium for this economy. (e) [2] Describe the consumers' equilibrium insurance plans in this economy. Is insurance actuarially fair? Are the consumers ever fully insured? Interpret your

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