Asked by
sydnee harris
on Oct 14, 2024Verified
Ambrose's brother Bartholomew has an income of $109 and a utility function U(x1, x2) 32x1/21 x2.The price of good 1 (nuts) is $4 and the price of good 2 (berries) is $1.How many units of nuts will Bartholomew demand?
A) 12
B) 26
C) 14
D) 16
E) 30
Utility Function
A mathematical expression that ranks alternatives according to their utility to an individual, indicating the level of satisfaction or preference.
Nuts
Apart from the common understanding as a type of food, in an economic or financial context, "nuts" does not have a specific definition.
Berries
Berries are small, pulpy, and often edible fruits, typically juicy, rounded, brightly colored, sweet or sour, and do not have a stone or pit, although many seeds may be present.
- Study utility functions to discern the advantageous consumption quantities.
- Interpret the demand function for various products through utility maximization principles.
Verified Answer
BE
Learning Objectives
- Study utility functions to discern the advantageous consumption quantities.
- Interpret the demand function for various products through utility maximization principles.