Question A.3 (iv) Consider an economy with a single physical commodity and uncertainty captured by two states of nature 8 = {a, b}. This economy is endowed with markets for two assets with payoffs TIT : [1 2] and r; = [2 0] in states a and b respectively. There are on aggregate ten units of the commodity available in each state of nature. The economy is populated by two individuals h, k. Individual it has preferences Uh (xh(a), xh(b)) = log 3331(0) + log xh(b). At equilibrium, mh(a) = 6 while mk(b) = 2mk(a). Find equilibrium asset prices and allocation of the commodity in each state. [10 marks]