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

Question 32

Multiple Choice

-John's utility of wealth curve is shown in the above figure. He currently has total wealth of $20,000. If there is a 50 percent chance that his $10,000 car will be stolen, what is the value of insurance against the theft? A) $0 B) $5,000 C) $7,000 D) $13,000
-John's utility of wealth curve is shown in the above figure. He currently has total wealth of $20,000. If there is a 50 percent chance that his $10,000 car will be stolen, what is the value of insurance against the theft?


A) $0
B) $5,000
C) $7,000
D) $13,000

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