Refer to the scenario above. Suppose the discount weight attached to the future benefit is 1/5. People will earn a net benefit equal to:

If a fall in the price of good A increases the quantity demanded of good B

A) A and B are substitutes. B) A and B are complements. C) A is a substitute for B, but B is a complement to A. D) B is a substitute for A, but A is a complement to B.

Soran is risk averse. If her wealth rises by $100, her total utility increases by 300. If her wealth increases, her total utility will decrease

A) by more than 300. B) by less than 300. C) by 300. D) by some amount that cannot be determined without more information.