Problem $2$

$(5$ points. Exercise $8\mathrm{.}4)$

Consider a two$-$period, small open endowment economy. Assume that households' preference are described by the following utility function:

$ln{C}_1+ln{C}_2$

where $C_1$ and $C_2$ denote consumption in periods $1$ and $2.$ Households are endowed with $10$ units of goods in each period