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Antonio Davis
on Dec 01, 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 $5, and his income is $190, how many units of berries will Ambrose choose?

A) 36
B) 101
C) 18
D) 17
E) 21

Utility Function

A representation of how consumer satisfaction varies with the consumption of different goods or services.

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford with their income level, given the prices of these goods and services.

Nuts

Edible seeds or fruits with a hard shell, often used as a source of food or oil.

  • Use the maximization of utility principle to ascertain the optimal mix of consumption items.
  • Assess the consequences of price variations on the selection of consumption options.
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Shane ClarkDec 02, 2024
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