Cecil Consumes X₁ and X₂ in Fixed Proportions

Cecil consumes x₁ and x₂ in fixed proportions.He consumes A units of good 1 with B units of good 2.To solve for his demand functions for goods 1 and 2,

A) set MU₁/MU₂ = p₁/p₂ and solve for x₁.
B) solve the following two equations in two unknowns: Ax₁ = Bx₂ and p₁x₁ + p₂x₂ = m.
C) solve the following two equations in two unknowns: Bx₁ = Ax₂ and p₁x₁ +p₂x₂ = m.
D) you only need to use the equation given by his budget line.
E) use the fact that he spends all of his income on good 1 so long as it is the cheaper good.

Correct Answer:

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