Question: Multiple Choice Suppose the indirect utility function for a household that consumes two commodities is: v ( p 1 , p 2 , m )

Multiple Choice

Suppose the indirect utility function for a household that consumes two commodities is:

v(p1, p2, m) = ln(p2/p1) +m/p21.

Using Roy identity, calculate the Marshallian demand for good 1.

a. m/2p1

b. m/p1

c. 2p2/m

d. p2/p1

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