We are going to assume Steve's initial endowment of incomes in the two states of the world is:

I₁= 200andI₂= 300

A-D security prices are: q₁= $2andq₂= $3

Steve has (subjective) beliefs about the probabilities of the states of the world:

₁= 0.5and₂= 0.5

If Steve sells all of his income in state 1, then the value of z₁will be z₁=____and he will be able to buy z₂=____giving him a possible maximum level of income in state 2 equal to ____.