Asked by

sydnee harris
on Oct 14, 2024

verifed

Verified

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.
verifed

Verified Answer

BE
Bardi ErnestOct 20, 2024
Final Answer:
Get Full Answer