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II (computing VSL) Consider an individual who has a utility function over e w and mortality probability a of the form: U(w, a) = w

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II (computing VSL) Consider an individual who has a utility function over e w and mortality probability a of the form: U(w, a) = w - an', where given positive constant. This individual faces a constraint given by w where b is a given positive constant. II.1 Define an indifference curve for this individual, and find the slope indifference curve and relate the slope to the ratio of marginal util II.2 Find the utility-maximizing bundle (w, #) for this individual. No this bundle will be a function of a and b. II.3 Suppose a = 1011 2 and b = 10". Find the VSL for this individual calculating the slope of the constraint, or ii) by computing the slop individual's indifference curve, at the optimal bundle you have cal earlier

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