Question: Only need help on question number 2.What method should be adopted to explain the problem? How does it require us to understand this process? I

Only need help on question number 2.What method should be adopted to explain the problem? How does it require us to understand this process? I was wondering where it was going to simplify the formula.

Only need help on question number 2.What method should be adopted to

There are two types of agents, doctors (D) and athletes (A), and they live for two periods. For each type 2' E {D, A}, given an initial endowment (51,53), we consider the following problem: max logx'i + 310ng s.t. :35 5'2 + (1 +r) (F1 3'1) :ch 20,1; 20 where .733 is the consumption of type 2' in period 1, at; is the consumption of type i in period 2, )3 G (0, 1) is the discount factor, and 'r > 0 is the real interest rate. 1. Derive the demand function of each type. 2. Derive optimal individual savings of each type

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