Question: =+B. * Now suppose that the function u1x2 5 ln 1x2 allows us to represent a teenagers tastes over gambles involving lifetime consumption using an

=+B. * Now suppose that the function u1x2 5 ln 1x2 allows us to represent a teenager’s tastes over gambles involving lifetime consumption using an expected utility function. Let d represent the probability of a pregnancy occurring if the teenagers engage in sexual activity, and let x0 and x1 again represent the two lifetime consumption levels.

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