Ambrose’s utility is U(x₁, x₂) = 4x^1/2 + x₂. If the price of nuts (good 1) is $1, the price of berries (good 2) is $4, and his income is $104, how many units of nuts will Ambrose choose?

Ambrose’s utility function is U(x₁, x₂) = 4x^1/2 + x₂. If the price of nuts (good 1) is $1, the price of berries (good 2) is $6, and his income is $198, how many units of berries will Ambrose choose?

Answer rating: 100% (QA)

Solution U x x 4x 2 4x x 121 MUN du 4 ... View the full answer