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

question 26

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 23 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 45 units of nuts?

• A)30
• B)7
• C)10
• D)20
• E)5

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Definitions:

Railroad Owners

Individuals or companies that own the infrastructure and rolling stock for railway transport, historically significant in the development and economic growth of many countries.

American Railway Union

A short-lived but significant labor union in the United States, founded in 1893 by Eugene V. Debs, that sought to unify all railroad workers, regardless of craft or job function, into one organization.

Pullman Cars

Luxury railway cars that were introduced in the 19th century, offering sleeping accommodations and other amenities, revolutionizing long-distance train travel.

Gilded Age

A period in the late 19th century marked by rapid economic growth, technological advancement, and ostentatious wealth amidst widespread social issues in the United States.