-The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, the highest price for insurance this person would pay is
A) $0.
B) $5,000.
C) $10,000.
D) $20,000.

Question

-The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, the highest price for insurance this person would pay is
A) $0. 
B) $5,000. 
C) $10,000. 
D) $20,000.

Quizplus · Accepted Answer

The Answer of 
-The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, the highest price for insurance this person would pay is
A) $0. 
B) $5,000. 
C) $10,000. 
D) $20,000.

-The Above Figure Shows the Utility of Wealth Curve for a Homeowner