Question 1. Consider the following model of housing using a simple exchange econ- omy. Suppose there are two tradeable goods: money m, and housing h. Agents may also derive utility from a non-tradable good, their superannuation s. All agents i in the economy have the utility function uim, h) = ln(m) +h+ln(si) Note that utility is written as a function of money m and housing used h. As superannu- ation s is not tradeable, it has not been included as a choice variable. It will never have a 'price' attached to it. It simply adds to utility if the agent has it, and doesn't if they don't.' Suppose further that there are 100 agents in the economy. Agents 1 to 50 (Type-1 agents) looking to buy a home, and are endowed with w = (10,0). Agents 51 to 100 (Type-2 Agents) already own homes, and are endowed with w; = (5,2). Throughout your work, assume the price of money is Pm = 1. a) Why can we assume the price of money is 1 in our modelling? b) What is the Marshallian Demand function x (p.pwi) for the Type-l agents? c) What is the Marshallian Demand function x;(P. pw;) for the Type-2 agents? Question 1. Consider the following model of housing using a simple exchange econ- omy. Suppose there are two tradeable goods: money m, and housing h. Agents may also derive utility from a non-tradable good, their superannuation s. All agents i in the economy have the utility function uim, h) = ln(m) +h+ln(si) Note that utility is written as a function of money m and housing used h. As superannu- ation s is not tradeable, it has not been included as a choice variable. It will never have a 'price' attached to it. It simply adds to utility if the agent has it, and doesn't if they don't.' Suppose further that there are 100 agents in the economy. Agents 1 to 50 (Type-1 agents) looking to buy a home, and are endowed with w = (10,0). Agents 51 to 100 (Type-2 Agents) already own homes, and are endowed with w; = (5,2). Throughout your work, assume the price of money is Pm = 1. a) Why can we assume the price of money is 1 in our modelling? b) What is the Marshallian Demand function x (p.pwi) for the Type-l agents? c) What is the Marshallian Demand function x;(P. pw;) for the Type-2 agents