Figure 14-4

Figure 14-4. The figure shows a utility function for Dexter.
-Refer to Figure 14-4. From the appearance of the graph, we know that

A) Dexter's level of satisfaction increases by more when his wealth increases from $1,001 to $1,002 than it does when his wealth increases from $1,000 to $1,001.
B) Dexter's level of satisfaction increases by less when his wealth increases from $1,001 to $1,002 than it does when his wealth increases from $1,000 to $1,001.
C) Dexter's level of satisfaction increases by the same amount when his wealth increases from $1,001 to $1,002 as it does when his wealth increases from $1,000 to $1,001.
D) None of the above answers can be inferred from the appearance of the utility function.

Correct Answer:

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