Figure 27-2.The figure shows a utility function for Britney.
-Refer to Figure 27-2.From the appearance of the utility function,we know that
A)Britney is risk averse.
B)Britney gains more satisfaction when her wealth increases by X dollars than she loses in satisfaction when her wealth decreases by X dollars.
C)the property of increasing marginal utility applies to Britney.
D)All of the above are correct.

Question

Figure 27-2.The figure shows a utility function for Britney. 
-Refer to Figure 27-2.From the appearance of the utility function,we know that
A)Britney is risk averse. 
B)Britney gains more satisfaction when her wealth increases by X dollars than she loses in satisfaction when her wealth decreases by X dollars. 
C)the property of increasing marginal utility applies to Britney. 
D)All of the above are correct.

Quizplus · Accepted Answer

The utility function's appearance suggests diminishing marginal utility, indicating risk aversion, which aligns with option A.