Asked by George Maillard Jr. on Jun 27, 2024
Verified
A diagram of an individual's utility from income will be a line with an increasing slope if the individual is risk-averse.
Marginal Utility
The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.
- Learn about the fluctuating marginal utility of income based on different risk preferences.
Verified Answer
VL
Vivian LuongJul 02, 2024
Final Answer :
False
Explanation :
A risk-averse individual's utility from income typically increases at a decreasing rate, which is represented by a concave curve, not a straight line with an increasing slope.
Learning Objectives
- Learn about the fluctuating marginal utility of income based on different risk preferences.