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-The Above Figure Shows the Utility of Wealth Curve for a Homeowner

Question 230

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-The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, the highest price for insurance this person would pay is A) $0. B) $5,000. C) $10,000. D) $20,000.
-The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, the highest price for insurance this person would pay is


A) $0.
B) $5,000.
C) $10,000.
D) $20,000.

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