Figure 27-2.The figure shows a utility function for Britney.
-Refer to Figure 27-2.Suppose the vertical distance between the points (0,A)and (0,B)is 5.If her wealth increased from $1,050 to $1,350,then
A)Britney's subjective measure of her well-being would increase by less than 5 units.
B)Britney's subjective measure of her well-being would increase by more than 5 units.
C)Britney would change from being a risk-averse person into a person who is not risk averse.
D)Britney would change from being a person who is not risk averse into a risk-averse person.

Question

Figure 27-2.The figure shows a utility function for Britney. 
-Refer to Figure 27-2.Suppose the vertical distance between the points (0,A)and (0,B)is 5.If her wealth increased from $1,050 to $1,350,then
A)Britney's subjective measure of her well-being would increase by less than 5 units. 
B)Britney's subjective measure of her well-being would increase by more than 5 units. 
C)Britney would change from being a risk-averse person into a person who is not risk averse. 
D)Britney would change from being a person who is not risk averse into a risk-averse person.

Quizplus · Accepted Answer

The Answer of Figure 27-2.The figure shows a utility function for Britney. 
-Refer to Figure 27-2.Suppose the vertical distance between the points (0,A)and (0,B)is 5.If her wealth increased from $1,050 to $1,350,then
A)Britney's subjective measure of her well-being would increase by less than 5 units. 
B)Britney's subjective measure of her well-being would increase by more than 5 units. 
C)Britney would change from being a risk-averse person into a person who is not risk averse. 
D)Britney would change from being a person who is not risk averse into a risk-averse person.