Question: For m > p2, the demand functions for goods 1 and 2 are given by the equations, 1 = m m/p2 - 1 and

For m > p2, the demand functions for goods 1 and 2

For m > p2, the demand functions for goods 1 and 2 are given by the equations, 1 = m m/p2 - 1 and x2 = = P /p2, where m is income and P and p are prices. Let the horizontal axis represent the quantity of good 1. Let p = 1 and p2 = 2. Then for m > 2, the income offer curve is a vertical line a horizontal line a straight line with slope 2 a straight line with a slope of 1/2

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