Following table shows the domestic supply and demand schedule for rice in Thailand. Price of rice Quantity Demanded Quantity supplied
3.50 2100 3300
3.25 2150 3200
3.0 2200 3100
2.75 2250 3000
2.50 2300 2900
1.25 2350 2800
1.0 2400 2700
0.75 2450 2600
0.50 2500 2500
0.25 2550 2400
a. In autarky, what is the domestic quantity supplied and price?
b. The world price of rice is $1.25 per kilogram. If Thailand opens up to trade in rice, what will be the new domestic price of rice?
c. What quantity of rice will be supplied by domestic producers?
d. What quantity of rice will be demanded by domestic consumers?
e. How much rice will Thailand import or export?

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?