Suppose your classmate Deborah offers you a wager: She will choose a playing card at random from a deck and pay you $3,000 if it is red, but you have to pay her $3,000 if it is black. Assume your wealth is currently $9,000. The graph shown below plots your utility as a function of wealth. Use the graph to answer the questions that follow. The shape of your utility function implies that you are a (risk averse, risk friendly) individual, and, therefore, you (would, would not) accept the wager because the difference in utility between A and C is (greater than, less than) the difference between C and B. Which of the following sentences most appropriately describe why the pain of losing $3,000 is greater than the joy of winning $3,000 for individuals who are risk averse? Check all that apply. The utility function of a risk-averse person exhibits the law of diminishing marginal utility. The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar. Risk-averse people are relatively wealthy and simply do not need the additional money. The more wealth that risk-averse people have, the more satisfaction they receive from an additional dollar.