2. Economics
3. in addition to the numbers given in number question 2...

# Question: in addition to the numbers given in number question 2...

###### Question details

In addition to the numbers given in number question 2 ,

r = 100

q = 300

what are the values of I'S ?;  I'H ?

 $1,000;$1,700
 $900;$6,200
 $1,200;$5,900
 $5,900;$1,200
 none of the above

Calculate expected income E(I) given IS = $1,000 and IH =$6,000 and (1 - p) = 90% ?

 $1,700 $15,000
 not enough information given
 $5,500 $1,500

if uncertainty exists and there is no insurance available,the risk-averse individual's expected income will provide a utility level found

 on the total utility curve
 below the total utility curve
 above the total utility curve
 all of the above
 none of the above