Asked by
Jacob Dobbs
on Oct 14, 2024Verified
Ambrose's brother Bartholomew has an income of $133 and a utility function U(x1, x2) 28x1/21 x2.The price of good 1 (nuts) is $2 and the price of good 2 (berries) is $1.How many units of nuts will Bartholomew demand?
A) 45
B) 59
C) 47
D) 49
E) 96
Utility Function
A mathematical representation in economics that quantifies an individual's preference for certain goods or outcomes over others.
Nuts
Edible seeds typically encased in a hard shell, commonly consumed as snacks or used in various recipes.
Berries
Small, pulpy, and often edible fruits that are typically juicy, rounded, brightly colored, and have seeds.
- Inspect utility functions to pinpoint optimal consumption rates.
- Analyze the correlation between utility maximization and the demand function for diverse commodities.
Verified Answer
RE
Learning Objectives
- Inspect utility functions to pinpoint optimal consumption rates.
- Analyze the correlation between utility maximization and the demand function for diverse commodities.