Hi, can you help me to solve this problem

A consumer has a probability p of becoming sick, and if he is sick, he suffers a utility loss of (3. With a wealth level IV, his utility is UU/V) if he is healthy, and his utility is U04\") If if he is sick. Hence, his expected utility is (JO/V) p X 6. (D0 note that illness does not cause any income loss.) There is a treatment available. It costs C and can eliminate the disutility 6. Hence, if the consumer pays C, his wealth becomes 'W C, and the loss I? is eliminated. i) For a given 3, explain how a consumer decides whether to use treatment or not. (4 points) Now assume that the utility loss 6 is uniformly distributed on [0, 1]; that is, the value of f can take any number between 0 and lwith the density 1. Assume that C = 0.5. This applies to the rest of the question. ii) Explain how you would nd a critical level Esuch that the consumer will pay for the treatment if and only if E > 2' (6 points) iii) Health insurance takes the form of reducing the treatment cost C to SC, where 0