Question: Problem 1 (18 marks) Assume that Mark's preferences are represented by the utility function 1((1, (2) = (102 , a E (0, 1) where ci

Problem 1 (18 marks) Assume that Mark's preferences are represented by

Problem 1 (18 marks) Assume that Mark's preferences are represented by the utility function 1((1, (2) = (102 ", a E (0, 1) where ci is his consumption during period 1 and c2, his consumption during period 2 (the price of consumption is 1 for both periods). Assume that 0

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