(a) Suppose that when tomorrow (time t + l) arrives, Riley will order food to be eaten tomorrow as if maximizing the following utility function Ulft+1lht+ll = '(le ht+1)2 where ft.\" stands for food at time t + 1 and ht\" stands for how hungry Riley is at time t + 1. Solve for the amount of food that Riley will order tomorrow, for tomorrow. (b) Now suppose that when ordering food today to be eaten tomorrow, Riley behaves as if having the following utility function: U(ft+l|h~t+lahtl = '(in (1 (1)31; - Grills\")2 where a E [0, 1]. Thus, the amount ordered for tomorrow depends on how hungry Riley is today, and how hunm Riley will be tomorrow (which you can assume Riley forecasts with perfect accuracy). Solve for the optimal amount of food that Riley will order today, for tomorrow. (c) How might we interpret the parameter a in terms of projection bias? ((1) Suppose Riley ordered the optimal amount of food for tomorrow, according to the model in part (b). Would Riley have more or less food than needed? Explain your answer. (e) Describe a real-life example where projection bias may lead to economic inefficiency or mis-allocated resources. This example can be from a paper we discussed in lecture, or you may think of another application