For m p₂, the demand functions for goods 1 and 2 are given by the equations, - 1 and , where m is income and p₁ and p₂ are prices. Let the horizontal axis represent the quantity of good 1. Let p₁ = 1 and p₂ = 2. Then for m 2, the income offer curve is A) a vertical line. B) a horizontal line. C) a straight line with slope 2. D) a straight line with a slope of. E) None of the above.

Question

For m > p₂, the demand functions for goods 1 and 2 are given by the equations, - 1 and , where m is income and p₁ and p₂ are prices. Let the horizontal axis represent the quantity of good 1. Let p₁ = 1 and p₂ = 2. Then for m > 2, the income offer curve is A) a vertical line. B) a horizontal line. C) a straight line with slope 2. D) a straight line with a slope of. E) None of the above.

Quizplus · Accepted Answer

The Answer of For m > p₂, the demand functions for goods 1 and 2 are given by the equations, - 1 and , where m is income and p₁ and p₂ are prices. Let the horizontal axis represent the quantity of good 1. Let p₁ = 1 and p₂ = 2. Then for m > 2, the income offer curve is A) a vertical line. B) a horizontal line. C) a straight line with slope 2. D) a straight line with a slope of. E) None of the above.

For M > P2, the Demand Functions for Goods 1

For M > P₂, the Demand Functions for Goods 1