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-John's Utility of Wealth Curve Is Shown in the Above

Question 122

Multiple Choice

  -John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If the state lottery offers a 1 in 10,000 chance of winning $10,000, John will A)  pay whatever price it takes to play. B)  pay $1 to play this game. C)  pay less than $1 to play this game. D)  not be willing to play this game at any price.
-John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If the state lottery offers a 1 in 10,000 chance of winning $10,000, John will


A) pay whatever price it takes to play.
B) pay $1 to play this game.
C) pay less than $1 to play this game.
D) not be willing to play this game at any price.

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