Asked by
Lillian Hoyer
on Dec 01, 2024Verified
Ambrose's brother Sebastian has a utility function U(x1, x2) = 60x1/21 + x2.His income is $165, the price of good 1 (nuts) is $6, and the price of good 2 (berries) is $1.How many units of nuts will Sebastian demand?
A) 25
B) 23
C) 35
D) 21
E) 48
Utility Function
A mathematical representation of an individual's preference ordering over a set of goods or outcomes.
Income
The financial gain earned or received by an individual or entity, usually through work, investments, or business operations.
Nuts
Hard-shelled seeds of certain plants that are edible and often rich in nutrients such as fats, proteins, and carbohydrates.
- Ascertain the best choice for a consumer within the confines of budget restrictions and price levels.
Verified Answer
LD
Learning Objectives
- Ascertain the best choice for a consumer within the confines of budget restrictions and price levels.