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Figure 27-4

Question 99

Multiple Choice

Figure 27-4.The figure shows a utility function for Alex. 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.
-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.

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