Economics suppose an agent to possess $10 of wealth (income=I) and to contemplate a gamble that gives her a 50% chance of winning $5 and a 50% chance of losing $5. Suppose that agent to have utility function equal to u(I) = √I. What would be the risk premium and certainity equivalent associayed with making this agent indifferent between axcwpting and rejecting this gamble? suppose that agent to have utility equal to u(I) = I. What would be the risk premium and certainty equivalent associated with making this agent indifferent between accepting and rejecting this gamble? suppose that agent to have utility function equal to u(I) = I^2. what would be the risk premium and certainty equivalent associated with making this agent indifferent between acceptinf qnd rejecting thia gamble? Derive gour solutions, step-by-step, and provide appropriate graphical illustrations for each of these cases.

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