Problem
Suppose that consumption when it's sunny and consumption when there's a hurricane are perfect complements. The investor's indifference curves are L-shaped, and the corner of each L lies on the 45-degree line. Using graphs, explain why these assumptions imply infinite risk aversion.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.