Problem
You've seen that the consumer's degree of risk aversion doesn't affect the quantity of actuarially fair insurance purchased (since all risk-averse consumers will fully insure). Using graphs, show that the degree of risk aversion does affect the value of insurance. Is the value of fair insurance smaller or larger to a more risk-averse consumer?
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.