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megan eldridge
on Oct 14, 2024

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Ambrose's utility function is  4x1/21  x2.If the price of nuts (good 1) is $1, the price of berries (good 2) is $7, and his income is $259, how many units of berries will Ambrose choose?

A) 8
B) 197
C) 9
D) 18
E) 12

Utility Function

A mathematical representation that ranks preferences or satisfaction levels of a consumer for different bundles of goods.

Budget Constraint

A representation of all the combinations of goods and services a consumer can afford to buy with their income.

Nuts

Hard-shelled seeds of certain plants that are generally edible and nutritious, often eaten raw, roasted, or used as ingredients in cooking.

  • Implement the utility maximization concept to find ideal consumption pairings.
  • Investigate the influence of pricing adjustments on purchasing preferences.
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Charles MputuOct 18, 2024
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