Question: 2. [12 pts] A consumer with a concave utility function 'u,(.) over money has wealth $71). There is some chance that she may suffer a

2. [12 pts] A consumer with a concave utility function 'u,(.) over money has wealth $71). There is some chance that she may suffer a loss of $L. The probability of this happening is p. The consumer can purchase insurance against this event. The premium she needs to pay for each dollar of coverage is 7r p, the consumer will buy less than full coverage

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10. How much time does it take between when we collect information until it is used in decision-making?

2. Ask questions, listen rather than attempt to persuade.