(21] points]I Consider an agent who is an expected utility maximizer with etc) = 1113:. He has an initial wealth W. With probability [LE] he loses an amount L. Otherwise there is no loss. He can buy insurance at p per unit. A unit of insurance pays hinl $1 in the event of a loss. (So, to make up for the entire loss he would have to have L units of insurance.) Suppose that the agent buys or > 0 amount of insurance (a) Derive the rst order condition for expected utility maximization for this agent. (3 points) (b) Compute his demand for units of insurance 0: as a function of p, W and L. (7 points) (c) Show that the agent fully insures} if p = 0.5 [5 points)