Suppose that John?s preferences for wages and risk (a bad) are given by theutility function:U = W x e-Rwhere e represents the exponential function, W is the weekly wage, and Rrepresents the type of job. R = 0 if the job is safe and R = 1 if the job isdangerous. Suppose that the safe job pays $287 per week.a. Will John take a dangerous job if he is offered $500 per week? Why orwhy not?b. Calculate John?s reservation price.