1. Suppose there are two large-scale agricultural 1water users: Barbara and Dianne. Let 3,! denote water use. Barbara has a utility function of water use U3 (:9!) = 5y II].253,.'2 and Dianne has a utility function of water use Un{y) = 20 $134115\". {a} What are Barbara and Dianne's respective demands for water? {Find each per- son's demand curve for y.) {13) Suppose the supply of water is uncertain. In each period, there is a 40% chance of there being 2 acre-feet of water available, a 49% chance of there being 5 acre-feet of water available, and a 20% chance of there being 1|]| acre-feet of water available. i. What is the expected value of water availability y]? ii. Suppose Barbara and Dianne are each contemplating creating a groundwater storage project. The project would be purely for storage: there would be no additional water yield. Derive the value of stabilization this storage would provide Barbara. Derive the value of stabilization this storage would provide Dianne. Label your answers with the correct units