Question
You have an avocado tree, which grows 100 avocados this year, 50 next year. Your neighbor has an avocado tree, which grows 0 avocados this
You have an avocado tree, which grows 100 avocados this year, 50 next year. Your neighbor has an avocado tree, which grows 0 avocados this year, 150 next year. Under agreement "1 today = 2 tomo".
Let s be the number of avocados you save.
a. Solve for your optimal saving: s=?
b. Under the optimal saving s you solved in the previous question.
Your consumption this year=? (i.e. how many avocados would you consume this year)
c. Under the optimal saving s you solved in the previous question.
Your consumptionnextyear=? (i.e. how many avocados would you consume next year)
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