Ambrose's Brother Sebastian Has a Utility Function , Where

question 54

Multiple Choice

Ambrose's brother Sebastian has a utility function , where x₁ is his consumption of nuts and x₂ is his consumption of berries. His income is $128, the price of nuts is $2, and the price of berries is $1. How many units of berries will Sebastian demand?

• A) 30
• B) 60
• C) 55
• D) 49
• E) There is not enough information to determine the answer.

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Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or calculation.

Area

The measure of the extent of a two-dimensional surface or shape, in square units.

Student T Distribution

A probability distribution used in statistics for estimating population parameters when the sample size is small and the population variance is unknown.

Normal Distribution

Exhibiting symmetry around the mean, this probability distribution reveals that there are more occurrences close to the mean than far away from it.