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For M > P2, the Demand Functions for Goods 1

Question 49

Multiple Choice

For m > p2, the demand functions for goods 1 and 2 are given by the equations, For m > p<sub>2</sub>, the demand functions for goods 1 and 2 are given by the equations, - 1 and , where m is income and p<sub>1</sub> and p<sub>2</sub> are prices. Let the horizontal axis represent the quantity of good 1. Let p<sub>1</sub> = 1 and p<sub>2</sub> = 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. - 1 and For m > p<sub>2</sub>, the demand functions for goods 1 and 2 are given by the equations, - 1 and , where m is income and p<sub>1</sub> and p<sub>2</sub> are prices. Let the horizontal axis represent the quantity of good 1. Let p<sub>1</sub> = 1 and p<sub>2</sub> = 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. , 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.

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