1. Mr. A is an expected utility maximizer, consuming two goods, apples a and carrots c. His preferences over the two goods are represented by a Bernoulli utility function u (a, c) = f (a) + ƒ (c) where f is a strictly increasing function. The prices of the two goods are uncertain, so that the price vector (Pa, Pc) can be equal either to (3, 1) or (1,3) with equal probability. He is given an option to purchase both goods at prices (Pa, Pc) = (2, 2). Will he take such an option, or will he wait for the price realization? Show work.