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 Ren begins with $1,050 in wealth. Starting from there,

A) he would be willing to accept a coin-flip bet that would result in him winning $300 if the result was "heads" or losing $300 if the result was "tails."
B) the pain of losing $300 of his wealth would equal the pleasure of adding $300 to his wealth.
C) the pain of losing $300 of his wealth would exceed the pleasure of adding $300 to his wealth.
D) the pleasure of adding $300 to his wealth would exceed the pain of losing $300 of his wealth.