Consider the Lucas tree model, but with two kinds of trees  

Consider the Lucas tree model, but with two kinds ugly and function is of trees pretty. Households enjoy owning pretty breep, so their utility t Eo [ 2/2 Bu (Ct, S+)] same fruit and there is Both types of trees produce the same fruit with I strictly increasing in both arguments and their budget constraint is? C++ Pt $.tti = Suit (Put + dut) + Sait (B+ + d+). one of each Solve individual optimization problem Derive the pricing equation for ugly and pretty trees. Suppose that the process for duidends is the same trees, prove that ugly frees. Provide an type. @ Define the competitive equilibmim for the problem ( clearly state the problem and market clearing conditions individual Pretty trees have a higher price than of economic interpretahon constructi part reference re b. ture, w across types of