Figure 27-1 The Following Figure Shows a Utility Function for Ren

Multiple Choice

Figure 27-1
The following figure shows a utility function for Ren.
-Refer to Figure 27-1. Suppose the vertical distance between the points (0, A) and (0, B) is 9. If his wealth increased from $1,050 to $1,350, then

A) Ren's subjective measure of his well-being would increase by less than 9 units.
B) Ren's subjective measure of his well-being would increase by more than 9 units.
C) Ren would change from being a risk-averse person into a person who is not risk averse.
D) Ren would change from being a person who is not risk averse into a risk-averse person.