In Problem 2, Ambrose Has the Utility Function U(x₁, X₂)

question 27

Multiple Choice

In Problem 2, Ambrose has the utility function U(x₁, x₂) . If Ambrose were initially consuming 49 units of nuts (good 1) and 12 units of berries (good 2) , then what is the largest number of berries that he would be willing to give up in return for an additional 32 units of nuts?

• A) 9
• B) 21
• C) 8
• D) 4
• E) 2

---

Definitions:

Stock Split

A corporate action that increases the number of a company’s shares by dividing each share, which in turn reduces its price but does not affect the total market capitalization.

Shares Outstanding

Refers to the total number of shares of a company that are currently owned by investors, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn reduces its price but not the total market capitalization.