Figure 14-4

Figure 14-4. The figure shows a utility function for Dexter.
-Refer to Figure 14-4. Suppose Dexter begins with $1,300 in wealth. Starting from there,

A) the pain of losing $500 of his wealth would equal the pleasure of adding $500 to his wealth.
B) the pain of losing $500 of his wealth would exceed the pleasure of adding $500 to his wealth.
C) the pleasure of adding $500 to his wealth would exceed the pain of losing $500 of his wealth.
D) This cannot be determined from the graph.

Correct Answer:

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