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In Problem 2, Ambrose Has the Utility Function U(x1, X2)

Question 21

Multiple Choice

In Problem 2, Ambrose has the utility function U(x1, x2) In Problem 2, Ambrose has the utility function U(x<sub>1</sub>, x<sub>2</sub>) . If Ambrose were initially consuming 81 units of nuts (good 1) and 22 units of berries (good 2) , then what is the largest number of berries that he would be willing to give up in return for an additional 40 units of nuts? A) 4 B) 8 C) 11 D) 33 E) 2 . If Ambrose were initially consuming 81 units of nuts (good 1) and 22 units of berries (good 2) , then what is the largest number of berries that he would be willing to give up in return for an additional 40 units of nuts?


A) 4
B) 8
C) 11
D) 33
E) 2

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