The cost of the merchandise inventory that the business ▼ has sold to customers. b. an amount granted to the purchaser as an incentive to keep goods that are not "as ordered". c. a type of merchandiser that buys merchadise either from a manufacturer or a wholesaler and then sells those goods to customers. d. a situation in which the buyer takes ownership (title) at the delivery destination point. e. a type of merchandiser that buys goods from manufacturers and then sells them to retailers. f. a discount that businesses offer to purchasers as an incentive for early payment. g. a situation in which the buyer takes title to the goods after the goods leave the seller's place of business. h. the terms of purchase or sale as stated on the invoice. i. a seller's request for cash from the purchaser.

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?