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Consider a Samuelson model with one commodity in each period and where the endowment of every consumer is e = (1, 0). Let the utility function of every consumer be u(x0 , x1) = x0 + 2x1.
(a) Draw a diagram that shows the set of feasible stationary allocations, the endowment, and sample indifference curves.
(b) Indicate on a second copy of the diagram which of the feasible stationary allocations are Pareto optimal.
(c) Compute a stationary spot price equilibrium, (x0 , x1, P , r , G, T), for this economy with positive interest rate rand with P = 1.
(d) State a social welfare maximization problem that is solved by the allocation of the stationary spot price equilibrium that you just found.
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18 ft3/s of air at 80oFenters a compressor at a pressure of 14.7 psi. The air leaves at a pressure of 90 psi. Heat loss from the compressor occurs at a rate of 9.7 Btu per lbm of air flowing through the compressor. If the compressor requires 90 hp, w..
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