Matt's Utility Function $$\begin{array} { c c } \text { Wealth } & \text { Utilty } \\\$ 50,000 & 7000 \\51,000 & 7250 \\52,000 & 7499 \\53,000 & 7746\end{array}$$

question 396

Multiple Choice

Matt's Utility Function $$\begin{array} { c c } \text { Wealth } & \text { Utilty } \\\$ 50,000 & 7000 \\51,000 & 7250 \\52,000 & 7499 \\53,000 & 7746\end{array}$$ If Matt's current wealth is $51,000, then

• A)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Matt is risk averse.
• B)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Matt is not risk averse.
• C)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Matt is risk averse.
• D)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Matt is not risk averse.

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