Part 1: Ambrose's brother Anselm has an income of $265 and a utility function U(x1,x2)=70x^1/2 + x2. The price of good 1(nuts) is $5 and the price of good 2 (berries) is $1. How many units of nuts will Anselm demand? Part 2: Ambrose's brother Augustine has an income of $128 and a utility function U(x1,x2)=36x^1/2 + x2. The price of good 1(nuts) is $3 and the price of good 2 (berries) is $1. How many units of berries will Augustine demand?
Part 1: Ambrose's brother Anselm has an income of $265 and a utility function U(x1,x2)=70x^1/2 + x2. The
Part 2: Ambrose's brother Augustine has an income of $128 and a utility function U(x1,x2)=36x^1/2 + x2. The price of good 1(nuts) is $3 and the price of good 2 (berries) is $1. How many units of berries will Augustine demand?
The word "utility" is used in economics to describe a good or service's value or importance. Utility is also the overall benefit or satisfaction a person gets from using a service or good. Consumers will typically assume that they desire to enhance their earnings in economic systems of rational choice.
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