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Again suppose your utility is Uw)=In(w). If you don't have a car accident, your wealth is 100,000. But you have 0.1% of having a car

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Again suppose your utility is Uw)=In(w). If you don't have a car accident, your wealth is 100,000. But you have 0.1% of having a car accident, in which case your wealth will be only 1,000. How much would you pay to eliminate this small possibility of a car accident? (Hint: suppose you pay X. X should satisfy U(100,000-x)=99.9% U(100,000)+0.1% U(1,000).) A. $ 459 B.$ 541 C.$ 2501 D. $ 4501

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