Total utility (units) 0 10 11 12 13 14 15 16 17 18 19 20 21 Wealth (thousands of dollars) John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If the state lottery offers a 1 in 10,000 chance of winning $10,000, John will Opay less than $1 to play this game. O pay whatever price it takes to play. Onot be willing to play this game at any price. Opay $1 to play this game.
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- Jien is just bored all the time; no amount of success makes him happy, it seems. Below is a list of his income for the last several years and the utility he experienced per dollar of income: Year Yearly Income Utility per Dollar Earned 2017 $60,000 2 utils 2018 $70,000 1.8 2019 $100,000 1.5 2020 $120,000 1 2021 $145,000 0.40 From the above, we can say that Jien most likely is different from most people economists study in terms of risk attitudes is "risk loving" will not take a fair bet has a utility of wealth curve that is a straight lineSuppose your friend Yvette offers you the following bet: She will flip a coin and pay you $3,000 if it lands heads up and collect $3,000 from you if it lands tails up. Currently, your level of wealth is $9,000. The graph shows your utility function from wealth. Use the graph to answer the following questions. UTILITY (Units of utility) 100 90 80 70 60 50 40 30 20 + 10 0 O 0 3 ** 6 с B 9 WEALTH (Thousands of dollars) 12 The shape of your utility function implies that you are a because the difference in utility between A and C is 15 ? individual, and, therefore, you the difference between C and accept the wager Which of the following best explain why the pain of losing $3,000 exceeds the pleasure of winning $3,000 for risk-averse people? Check all that apply. Risk-averse people overestimate the probability of losing money. Risk-averse people are relatively poor and cannot afford to lose any money. The more wealth that risk-averse people have, the less satisfaction they receive from an…48 aces How big would that budget have to be before he would spend a dollar buying a first cup of coffee? Instructions: Enter your answer as a whole number. here to search Suppose that Omar's marginal utility for each additional cup of coffee is 2.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. O Saved II Help 4 Saw
- What is the total utility at 3 units and the marginal utility when Jenna goes from consuming two units to three units pears? Quantity Marginal Utility 1 35 2 25 3 15 4 10 5 0 6 -5 Group of answer choices Total utility = 75 ; Marginal Utility = 15 Total utility = 75 ; Marginal Utility = 10 Total utility = 40 ; Marginal Utility = 15UTIITY (Units of utility) 10 Suppose your friend Deborah offers you the following bet: She will flip a coin and pay you $2,000 if it lands heads up and collect $2,000 from you if it lands tails up. Currently, your level of wealth is $6,000. The graph shows your utility function from wealth. Use the graph to answer the following questions. 100 90 80 B 70 A 60 50 40 30 20 10 WEALTH (Thousands of dollars)Sanjay won a poker game against his friends. Now he has to choose between $600 (the winnings) and the chance to play a new game. In this new game, Sanjay has a 50% chance of winning nothing and a 50% chance of winning $1000. The following graph presents the utility function of Sanjay with respect to money: 1. By how much money would his winnings need to increase or decrease so that Sanjay isindifferent between the $600 and the new game? At a different table, Juan wins $800 in a blackjack game. Similarly, he has to choose between $800 or the chance to win a new game. In this game, Juan has a 45% chance of winning nothing and a 55% chance of winning $1000. The following graph presents the utility function of Juan with respect to money: 2. By how much money would his winnings need to increase or decrease so that Juan is indifferent between the $800 and the new game? Please enter a positive number for an increase or a negative number for a decrease.
- Mike has a decreasing marginal uity of income We know that Mike's income in greater than S10, but we de not know his exact inome Adam offers Mika the folloeing bet Adam wil throw a fair coin (that is, heads and tals have equal probatilty) a heada. Mke pays Adam $10. ta Adam pays Mke S10 What can we conclude from this infonmation? O Mike will reject the bet only it his income is high emought Ob. Mike will reject the bet, independently of how high his income is Oc Mke wil accept the bet independently of how high his income is Od Mke will accept the bet only if his income is high enought O Mka will always be indiferent between accepting and rejecting the betColumns 1 through 3 in the table below show the marginal utility which a particular consumer would get by purchasing various quantities of products A, B, and C. (1) Unit 1 2 696 AWN 3 4 5 7 (2) Marginal utility, A 18 16 14 12 10 8 6 (3) Marginal utility, B 39 36 33 30 27 24 21 (4) Marginal utility, C 12 10 053 If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, what combination of the three products should be purchased in order to maximize utility?20. which one is correct
- T Suppose your classmate Gilberto offers you a wager: He will choose a playing card at random from a deck and pay you $1,000 if it is red, but you have to pay him $1,000 if it is black. Assume your wealth is currently $3,000. The graph shown below plots your utility as a function of wealth. Use the graph to answer the questions that follow. 100 ips ips 88888 UTILITY (Units of utility) + + 2 3 WEALTH (Thousands of dollars) + (? The shape of your utility function implies that you are a the difference in utility between C and A is individual, and, therefore, you rence between A and B. risk-friendly accept the wager because Which of the following sentences most appropriately des risk-averse pain of losing $1,000 is greater than the joy of winning $1,000 for individuals who are risk averse? Check all that apply. The more wealth that risk-averse people have, the more satisfaction they receive from an additional dollar. The more wealth that risk-averse people have, the less satisfaction they…• Can someone else measure your utility why or why not?2.Answer the question.