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do not need calculation or utility function. Just view the conclusion from the graph drawn 3. (3 points) By hand, draw any strictly concave (i.e.

do not need calculation or utility function. Just view the conclusion from the graph drawn

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3. (3 points) By hand, draw any strictly concave (i.e. strictly risk averse) utility function u : [0, 2000] > R. Answer each of the following ques tions using the graph you have just drawn. (a) In each of the following comparisons, identify the gamble that is more highly preferred, and illustrate your reasoning geometrically. i. $1,000 for sure vs. [(500; 0.5), (2, 000; 0.5)]. ii. $1,000 for sure vs. [(500; 0.2), (1, 000; 0.6), (2, 000; 0.2)]

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