Matt's Utility Function

If Matt's current wealth is $51,000,then
A)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000.Matt is risk averse.
B)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000.Matt is not risk averse.
C)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000.Matt is risk averse.
D)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000.Matt is not risk averse.

Question

Matt's Utility Function

If Matt's current wealth is $51,000,then
A)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000.Matt is risk averse. 
B)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000.Matt is not risk averse. 
C)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000.Matt is risk averse. 
D)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000.Matt is not risk averse.

Quizplus · Accepted Answer

The Answer is D

Matt's Utility Function If Matt's Current Wealth Is $51,000,then