endowments are e1=(10,0) and e2=(20,5). the good is perfectly storable so what is not consumed in the first period can be saved and consumed in the second period.
a) suppose the two consumers cannot trade with one another. how much does each consume in each period? how well off is each consumer?
b) now suppose there are competitive "spot" and "futures" markets for this good. let p1 be the (spot) price per unit in period 1, and p2 be the (futures) price prevailing in period 1 for delivery of one unit of the good in period 2. what will be the equilibrium relative prices p2/p1?
Recently Asked Questions
- Please refer to the attachment to answer this question. This question was created from CH 20 HW.
- I am working on this program and keep getting an error syntax error c2059. The course is GSP125 Lab 3
- Computerized Operating Systems (OS) are almost everywhere. We encounter them when we use out laptop or desktop computer. We use them when we use our phone or