Dollar Utility
-$45,000 0.00
-$40,000 0.10
-$5,000 0.70
$100,000 1.00
Problem 8-27 (a)
0.00
0.40
0.80
1.00
Utility Curve
0.82
High demand
0.812 0.18
10.000
0.700
0.11
0.990
Construct 0.990
0.45 Low demand
Negative result 0.000
0.700
2 Not Construct
0.700
1.000
Construct 1.000
0.900
Not Construct
0.900
Problem 8-27 (b)