Sally Kink is an expected utility maximizer with utility functionpu(c₁)+(1-p)u(c₂), where for anyx<1,000, u(x)=2x, and forxgreater than or equal to 1,000,u(x)=2,000+x.

a.Sally will be risk averse if her income is less than $1,000 but risk loving if her income is more than $1,000.b.Sally will never take a bet if there is a chance that it leaves her with wealth less than $2,000.c.Sally will be risk neutral if her income is less than $1,000 and risk averse if her income is more than $1,000.d.For bets that involve no chance of her wealth exceeding $1,000, Sally will take any bet that has a positive expected net payoff.e.None of the above.