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5. Consider a food delivery worker who makes $50,000 per year. There is a 10% chance each year that their e-bicycle gets stolen, which they
5. Consider a food delivery worker who makes $50,000 per year. There is a 10% chance each year that their e-bicycle gets stolen, which they would have to replace at a cost of $5,000. They browse online and find 4 insurance policies, each promising to replace the bicycle if it's stolen. Assuming that their utility function is: U(c) = c. Which of the following four products would they purchase? (A) $800 (B) $700 (C) $600 (D) $500
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