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

question 25

Multiple Choice

Ambrose's utility function is U(x₁, x₂) =4x^1/2₁ + x₂.If the price of nuts (good 1) is $1, the price of berries (good 2) is $5, and his income is $145, how many units of nuts will Ambrose choose?

• A)100
• B)200
• C)9
• D)103
• E)50

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