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Question 2 [8 points] The diagram below presents the utility function u(a) for an individual. u(a) u(a) a O X y Three numbers x, y

Question 2 [8 points] The diagram below presents the utility function u(a) for an individual. u(a) u(a) a O X y Three numbers x, y and z are located in the diagram. Suppose z = tx + (1-f)y. In the diagram above, identify: (i) u(x), (ii) u(y), (iii) u(=), (iv) tu(x) + (1-t) u(y). Determine if this individual is risk averse or not risk averse

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