The transmission of information through prices. Economist von Hayek asserted that one of the main roles of prices in a market economy is to aggregate information that individuals privately have. In this part, you are going to show whether or not prices reveal the information that some traders have.There is a market system for the exchange of two physical goods, ?wheat? and ?leisure?, and two payoff-relevant states of uncertainty,ÿs = 1, 2. There are two types of traders with Bernoulli state- dependent utilitiesui?xiÿ,xiÿ,s???ilogxiÿ?(1??i)logxiÿ1,s2,s sÿ1,s sÿ2,sand endowmentsÿwiÿ??1,1?, independent ofÿiÿorÿs, and with ?1 ? 2/3, ?1 ?1/3, whileÿs12?2 ?1/3, ?2 ? 2/3 (so tradersÿiÿare those who prefer wheat over leisure in stateÿi). Traders do 12not care about consuming today, nor they receive an endowment atÿs = 0. There is a (large) numberÿNÿof each type of traders in the market. Each traderÿi = 1ÿis perfectly informed of the state of nature before trading, receiving a signalÿy = 1, 2. Typeÿi = 2ÿtraders are totally uninformed. There are no financial assets for trading today, and state-contingent spot markets for the exchange of wheat and leisure will open after tradersÿi = 1ÿreceive their information.(a) Is this market informationally efficient?(b) Suppose that endowments were incorrectly measured. They actually areÿwiÿ??1,1?,ÿwiÿ??1,1???, with ? ?0 small, and exogenously fixed. Does your 12 conclusion at point (i) still hold true?(c) Draw conclusions regarding von Hayek?s assertion in this market (explain why you get your conclusions).