{"id":106461,"date":"2022-01-26T18:19:00","date_gmt":"2022-01-26T18:19:00","guid":{"rendered":"https:\/\/essayparlour.com\/paperhelp\/?p=106461"},"modified":"2022-01-26T18:19:00","modified_gmt":"2022-01-26T18:19:00","slug":"lucy-from-problem-4-spends-all-her-income-on-lemonade","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/paperhelp\/business-economics-2\/lucy-from-problem-4-spends-all-her-income-on-lemonade\/","title":{"rendered":"Lucy, from Problem 4, spends all her income on lemonade,"},"content":{"rendered":"<table style = 'table-striped table-bordered table-hover' responsive='true'>\n<tr>\n<th>Question<\/th>\n<\/tr>\n<tr>\n<td>Lucy, from Problem 4, spends all her income on lemonade, which costs $1 per pint. She earns $300 per month, but is robbed with 25 percent probability, in which case she is left with only $100. She can buy theft insurance to protect herself against that potential loss. The insurance costs 30 cents for each dollar of promised benefits. We can represent Lucy&#8217;s preferences with an expected utility function, with the benefit function W(L) = &#8211; 1\/L. Solve for Lucy&#8217;s budget line. Does she buy insurance? If so, how much? What is the value of that insurance to Lucy?<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question<\/p>\n<p>\nLucy, from Problem 4, spends all her income on lemonade, which costs $1 per pint. She earns $300 per month, but is robbed with 25 percent probability, in which case she is left with only $100. She can buy theft <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-106461","post","type-post","status-publish","format-standard","hentry","category-business-economics-2"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/106461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/comments?post=106461"}],"version-history":[{"count":1,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/106461\/revisions"}],"predecessor-version":[{"id":106462,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/106461\/revisions\/106462"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/media?parent=106461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/categories?post=106461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/tags?post=106461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}