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

question 29

Multiple Choice

Ambrose has the utility function U(x₁, x₂) =4x^1/2₁ + x₂.If Ambrose were initially consuming 4 units of nuts (good 1) and 27 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 21 units of nuts?

• A)5
• B)12
• C)6
• D)32
• E)3

---

Definitions:

Satellite System

A network of satellites working together to provide a variety of services such as communication, navigation, or earth observation from space.

Price

The amount of money required to purchase a product or service, determined by factors such as cost of production, market demand, and competition.

Quality

The degree to which a product or service meets or exceeds customer expectations, often measured in terms of durability, reliability, and performance.

Compensation Method

A strategy or approach used to calculate and distribute payment or rewards to employees or partners.