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Question 2: Description of an Economy Consider an endowment economy populated by Ben and Jerry. They live at t = 0,1 and their lifetime endowments
Question 2: Description of an Economy Consider an endowment economy populated by Ben and Jerry. They live at t = 0,1 and their lifetime endowments are measured by the quantities of goods given at period 0 (eo) and at period 1(21). Ben's lifetime endowment is represented as vector of (@Ben,o, ben,2)=(2, 0) whereas Jerry's endowment as (@jerry,o, @jerry,1)=(0, 2). Note that those endowments cannot be stored. As for preferences, Ben holds a utility function U(CB, C) = In c + B x Inc.0
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