Figure: Risk Aversion (Figure: Risk Aversion) Bob and Nancy Have the Same Income

Multiple Choice

Figure: Risk Aversion
(Figure: Risk Aversion) Bob and Nancy have the same income and total utility.The figure Risk Aversion shows their individual utility functions.Based on the information presented in the figure, which of the following is true?

A) Nancy will be willing to pay a higher insurance premium because she is more risk-averse than Bob.
B) Nancy will be willing to pay a lower insurance premium because she is more risk-averse than Bob.
C) Bob will be willing to pay a higher insurance premium because he is more risk-averse than Nancy.
D) Nancy will be willing to pay a lower insurance premium because Bob is more risk-averse than she is.