In Problem 3, Ambrose's Utility Is U(x₁, X₂) =

question 31

Multiple Choice

In Problem 3, Ambrose's utility is U(x₁, x₂) = . If the price of nuts (good 1) is $1, the price of berries (good 2) is $4, and his income is $108, how many units of nuts will Ambrose choose?

• A) 128
• B) 64
• C) 67
• D) 11
• E) 32

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Definitions:

Grid Layout

A type of layout used by retail stores to move customers past merchandise arranged on rows of shelves or fixtures.

Supermarkets

Large retail market stores specializing in the sale of food and household items, often organized into sections for convenience and efficiency.

Anchor Stores

A large retail store that attracts people to shop at malls.

Secondary

Pertaining to the second level or stage; often refers to activities, information, or products that are not the primary focus but nevertheless important.