Question 3 This question applies to parts 1-10. It contains drop-down multiple choice and numerical questions. Not answered Consider a world in which there are only two dates: 0 and 1. At date 1 there are two possible states of nature: A and B. The state at date Marked out of zero is known. There is one non-storable consumption good, apples. There are two consumers in the economy. The endowment of apples 10.00 at time 0 is equal to 2 for each consumer. At time 1 the endowment of apples is state-dependent. State physical probabilities, It, and state- Flag dependent endowments, e, for each consumer at time 1 are given in the table: question State Probability Agent 1 endowment Agent 2 endowment A 0.4 2 2 B 0.6 2 4 The expected utility is the same for both consumers and is given by co + BITA . U(CA) + TB . U(CB)], where the instantaneous utility at time 0 is linear and is just equal to consumption; the instantaneous utility at time 1 is given by u (c) = In(c) (natural logarithm). The consumer's time discount factor, B, is 0.90 for both consumers. In this economy, only atomic (Arrow-Debreu) securities can be traded. Note: round your answers to 3 decimal places if necessary. 1) Compute the equilibrium consumption of consumer 2 in state B: 2) Compute the equilibrium state A forward atomic price: 3) Consumer 2 will 4 * state A atomic security. 4) The equilibrium holding of state B atomic security by consumer 2 is X 5) In this Arrow-Debreu economy, market-clearing conditions imply that X 6) When trade is possible, in equilibrium X Mark 0.00 out of 1.00 comparing to the situation of no trade