Multiple Choice
Figure 27-4.The figure shows a utility function for Alex.
-Refer to Figure 27-4.From the appearance of Alex's utility function,we know that
A) the pain that Alex would experience if he lost $500 of his wealth would exceed the pleasure that he would experience if he added $500 to his wealth.
B) the pleasure that Alex would experience if he added $500 to his wealth would exceed the pain that he would experience if he lost $500 of his wealth.
C) the property of increasing utility does not apply to Alex.
D) the property of diminishing marginal utility does not apply to Alex.
Correct Answer:

Verified
Correct Answer:
Verified
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