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Question 1: Two-period model where Ci and C2 are perfect substitutes 1. Draw the budget constraint with Yi -100, Y2 60, and r 0.2. 2. Draw the indifference curves for the preference that is represented by the lifetime utility function Ci + BC2, where 3-1. Do it for various levels of lifetime utility, such as 100, 150, and 200 3. Using the budget constraint and the indifference curvs, determine the optimal values of C and C2. Does the household have positive consumption in both of the periods or only in one of the two periods? Explain the result. 1. How does the result change when we change the value of 3 to 0.5? Explain the result.

Question 3 and 4 please ! Please go step by step so I can fully understand the solution. thank you !

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Rue.i Too petiodmodel where Ci and c ate pe5%, ct substitutes Using the budget consteaint and the indizs erence Does the household have posidive consumption in both ot the peeiods o* only in the one -oo s) How doer-ıhe さesult change when we change. 3 Usina budget Conj^sainl and indi t- is touched by indidteence utilily i The household has Posiive Consumpiion only in one pexiod 200 アBudge IDO CLC the consume chooづe dhe one which he utity. mizes .0s, ther the optimizaịion …blem chanjes +c» CI 2C2 150 2 Co ith budget line intetseci the. But, 4he consume can atHcin β=o., we see that the 30o Budget Line 9 One majo๕ change nchon Lies about the budget coost αί045 000 cohich en suxes bundle Chosen suxely aive. maximum utilily. i+ calso means ^na*t ptesenl and Substitutes o ach othez

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