Ambrose's Brother Francis Has an Income of $170 and a Utility

question 2

Multiple Choice

Ambrose's brother Francis has an income of $170 and a utility function U(x₁, x₂) = . The price of good 1(nuts) is $5 and the price of good 2(berries) is $1. How many units of berries will Augustine demand?

• A) 31
• B) 25
• C) 45
• D) 90
• E) There is not enough information to determine the answer.

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Definitions:

Estimate

An approximation or educated guess of a certain quantity based on available data.

Population

The entire group or set of items or individuals from which samples may be drawn for statistical analysis.

Statistical Inference

The process of making predictions or decisions about a population based on sample data.

Reliability

The degree to which an assessment tool produces stable and consistent results.