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

question 26

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 $6, and his income is $186, how many units of nuts will Ambrose choose?

• A)288
• B)144
• C)147
• D)7
• E)72

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Definitions:

Merchandise

Goods bought and sold by a business in the ordinary course of its trading activities.

Detailed Income Statement

A comprehensive financial statement that summarizes a company’s revenues, expenses, and profits/losses over a specific period.

Business Activities

Economic actions undertaken by a company, ranging from operational to financial transactions.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net income or loss.