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Suppose that you have total sayings equal to $10,000 and you inyested the entire amount in Bitcoin. You are thinking about your consumption next year

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Suppose that you have total sayings equal to $10,000 and you inyested the entire amount in Bitcoin. You are thinking about your consumption next year in different "states of the world": it the Bitcoin yalue skyrockets, you will haye $100,000 {a 101: return}, but if it crashes, you will end up with only $1,000 {0.11:}. You believe that there are equal chances for these mo outcomes. a} Illustrate, using a graph, your consumption decision in the different states (Bitcoin up, Bitcoin down}. Assume first that you are riskayerse and that you haye the same preferences in both states of the world. b] Now assume that you haye statedependent preferences: you deriye much more utility from consumption in the case of Bitcoin rising. How would your consumption choice change

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