Figure 14-1

Multiple Choice

Figure 14-1. The figure shows a utility function.
-Refer to Figure 14-1. Suppose the person to whom this utility function applies begins with $600 in wealth. Starting from there,

A) she would be willing to accept a coin-flip bet that would result in her winning $200 if the result was "heads" or losing $200 if the result was "tails."
B) the pain of losing $200 of her wealth would equal the pleasure of adding $200 to her wealth.
C) the pain of losing $200 of her wealth would exceed the pleasure of adding $200 to her wealth.
D) the pleasure of adding $200 to her wealth would exceed the pain of losing $200 of her wealth.