Which of the Following Games Might a Risk-Averse Person Play

question 26

Multiple Choice

Which of the following games might a risk-averse person play?

• A)a game where she has a 70 percent chance of winning $1 and a 30 percent chance of losing $1
• B)a game where she has a 60 percent chance of winning $100 and a 40 percent chance of losing $100
• C)a game where she has a 60 percent chance of winning $2 and a 40 percent chance of losing $1
• D)All of the above are correct.

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Definitions:

Law of Demand

The principle stating that, all else being equal, as the price of a good increases, its demand falls and vice versa.

Market for Pizza

An example of a niche market, focused specifically on the buying and selling of pizza, influenced by consumer preferences and economic factors.

Summer to Fall

The transitional period from the warm summer months to the cooler autumn season, often marked by changes in weather, fashion, and consumer behavior.

Substitute Good

A product or service that can be used in place of another to satisfy similar needs or demands.