Three individuals are selected to participate in a Universal Basic Income pilot study. They will each...

 

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Three individuals are selected to participate in a Universal Basic Income pilot study. They will each receive $100 in period 1 and $150 the following period. Taking into account their preferences (given below), find the marginal rate of substitution of each person if they are unable to borrow or save. a) [3] Joaquin's preferences are captured by u(C1, C2) = ln(c) + 0.3 In(c2). b) [3] Soni's preferences are captured by u(C1, C2) = 4c0. co.7. c) [3] Ayo's preferences are captured by u(C1, C2) = min(7c, 2c). d) [3] Do these three individuals discount future consumption? Explain your reasoning. Three individuals are selected to participate in a Universal Basic Income pilot study. They will each receive $100 in period 1 and $150 the following period. Taking into account their preferences (given below), find the marginal rate of substitution of each person if they are unable to borrow or save. a) [3] Joaquin's preferences are captured by u(C1, C2) = ln(c) + 0.3 In(c2). b) [3] Soni's preferences are captured by u(C1, C2) = 4c0. co.7. c) [3] Ayo's preferences are captured by u(C1, C2) = min(7c, 2c). d) [3] Do these three individuals discount future consumption? Explain your reasoning.