Ambrose's Brother Patrick Has a Utility Function U(x₁, X₂)= 16x^1/2₁

question 16

Multiple Choice

Ambrose's brother Patrick has a utility function U(x₁, x₂) = 16x^1/2₁ + x₂.His income is $82, the price of good 1 (nuts) is $2, and the price of good 2 (berries) is $1.How many units of nuts will Patrick demand?

• A)26
• B)12
• C)14
• D)16
• E)30

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Definitions:

Linear Model

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Golf Ball

A small, hard ball used in the game of golf, typically white and covered with dimples to reduce air resistance during flight.

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