5. Argue that, given your answer to point 4, the sign of da*/ Ow is given by the sign of the numerator. Simplify the numerator using the first order conditions. Once you do this simplification, you should get the following expression for the numerator: (1 -p)w(r_ - r) [Itr+a(r_ -r)]u" (w[1+r+a(r_ -r)])+ pw (rt - r)[Itrta(rt -r)lu" (w[1+r + a ( rt - r ) ] ) . Now, let me do one piece of the argument for you. We are interested in the sign of this expression, since it coincides with the sign of do*/ Ow. We can rewrite it as (1 - p) (r_ - r)u' (w [1+r+ a(r_-r)]) u" (w [1tr ta(r_-r)]) u' (w ltr ta(r_ -r)]) ultrta(r_ -r)] + p(rt - r)u' ( w [1+r + a ( rt - r) ] ) u" ( w [Itr ta(rt -r)]) w (w ltrta(rt -r)]) witrta(rt -r)]