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Figure 14-2

Question 175

Multiple Choice

Figure 14-2. The figure shows a utility function for Mary Ann. Figure 14-2. The figure shows a utility function for Mary Ann. -Refer to Figure 14-2. Suppose Mary Ann begins with $1,050 in wealth. Starting from there, A) she would be willing to accept a coin-flip bet that would result in her winning $300 if the result was heads or losing $300 if the result was tails. B) the pain of losing $300 of her wealth would equal the pleasure of adding $300 to her wealth. C) the pain of losing $300 of her wealth would exceed the pleasure of adding $300 to her wealth. D) the pleasure of adding $300 to her wealth would exceed the pain of losing $300 of her wealth.
-Refer to Figure 14-2. Suppose Mary Ann begins with $1,050 in wealth. Starting from there,


A) she would be willing to accept a coin-flip bet that would result in her winning $300 if the result was "heads" or losing $300 if the result was "tails."
B) the pain of losing $300 of her wealth would equal the pleasure of adding $300 to her wealth.
C) the pain of losing $300 of her wealth would exceed the pleasure of adding $300 to her wealth.
D) the pleasure of adding $300 to her wealth would exceed the pain of losing $300 of her wealth.

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