pls help A consumer's behavior is described by the equation Y₁ = C₁ + S₂ where Yt,C and S, stand respectively for his income, consumption and saving at the timeperiod t. We assume that S = 3+1 +717√3 and C₁ = Y, at any time14period t.1. Show that the consumer's consumption satisfies the equation:Ct2√33-Ct-1-19122. Compute the consumer's initial income and initial savings, as well as hisconsumption in period 1 knowing that Co = 1206√3.3. Determine the consumer 's consumption over time.4. What would the consumer's consumption, savings, and income be in thelong run?5. Is the difference equation of consumption convergent? Justify your answer.

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A consumer's behavior is described by the equation Y = C₁ + S, where Y, C₁ and S, stand respectively for his income, consumption and saving at the time period t. We assume that S = ³+1+717√3 and C₂ = Y, at any time period t. 1. Show that the consumer's consumption satisfies the equation: 2√3 Ct 3-1-1912 2. Compute the consumer's initial income and initial savings, as well as his consumption in period 1 knowing that Co-1206√3.

A consumer's behavior is described by the equation Y = C₁ + S, where Y, C₁ and S, stand respectively for his income, consumption and saving at the time period t. We assume that S = ³+1+717√3 and C₂ = Y, at any time period t. 1. Show that the consumer's consumption satisfies the equation: 2√3 Ct 3-1-1912 2. Compute the consumer's initial income and initial savings, as well as his consumption in period 1 knowing that Co-1206√3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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