Ambrose Has the Utility Function U(x₁, X₂)=4x^1/2₁ + X₂

question 1

Multiple Choice

Ambrose has the utility function U(x₁, x₂) =4x^1/2₁ + 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

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