Suppose that Irma's utility function with respect to wealth is U(W) = 100 + 100W - W2.

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Suppose that Irma's utility function with respect to wealth is U(W) = 100 + 100W - W2. Show that for W < 10, Irma's Arrow-Pratt risk-aversion measure increases with her wealth?

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Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff

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Question Posted: Dec 29, 2017 01:05 AM

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Suppose that Irma's utility function with respect to wealth is U(W) = 100 + 100W - W2.

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Since the ArrowPratt measure is The m...View the full answer

Microeconomics Theory and Applications with Calculus

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