(Table: Utility for Terri and Mary) Use Table: Utility for Terri and Mary.Each has an income of $300.If each were offered insurance to offset the risk of falling income,_____ would pay a larger premium because she is the consumer with _____ risk aversion.

A) Terri;more
B) Terri;less
C) Mary;more
D) Mary;less

Risk Aversion

The tendency to prefer certainty over uncertainty, avoiding risk in decision-making or preferring safer investments.

Insurance

A means of protection from financial loss, characterized by the transfer of risk from one entity to another in exchange for payment.

Consumer

An individual or group who purchases goods and services for personal use.