Question: Suppose instead that the utility function is 11(x) = x2. What would Table 8.4 (b) look like, and what would 8 be? Table 8.4 Time-discounting

Suppose instead that the utility function is 11(x) = x2. What would Table 8.4

(b) look like, and what would 8 be?

Table 8.4 Time-discounting problem (in dollars and utiles) t=0 t=1 t=0 t=1

Table 8.4 Time-discounting problem (in dollars and utiles) t=0 t=1 t=0 t=1 a $9 $4 a 3 b $1 $25 b 1 25 2 (a) In dollar terms (b) In utility terms

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