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Your values can be calculated as v(x) = x/3 for gains and v(x) = 3x for losses

Economics

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Your values can be calculated as v(x) = x/3 for gains and v(x) = 3x for losses. (a) What does your value function look like graphically? (b) You just won EUR 30 in a poker game. In terms of value, how much did you just gain? (c) In the next round you lose EUR 30. In terms of value, how much did you just lose? (d) At the end of the day, you have no more or no less money than you did at the beginning. In terms of value, though, what is the net gain or loss of the whole sequence of events? Explain.