Ambrose's Utility Is U(x₁, X₂)= =4x^1/2₁ + X₂

question 3

Multiple Choice

Ambrose's utility is U(x₁, x₂) = =4x^1/2₁ + x₂.If the price of nuts (good 1) is $1, the price of berries (good 2) is $7, and his income is $238, how many units of nuts will Ambrose choose?

• A)6
• B)196
• C)392
• D)199
• E)98