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4 1 pts Blackbeard's demand functions for grog, x 1 , and bread, x 2 , are (if his income and the goods' prices are

4 1 pts Blackbeard's demand functions for grog, x 1 , and bread, x 2 , are (if his income and the goods' prices are such that he buys positive quantities of both goods): x 1 = 2p 1 M p 1 p 2 and x 2 = 2p 2 Mp 1 p 2 (Aside: As an exercise, you can show that these are indeed the demand functions if Blackbeard's utility function is: U(x 1 ,x 2 )=(x 1 1)(x 2 1).) Given Blackbeard's demand functions, which of the following statements are correct? (Note: Multiple answers may be correct.) If the price of bread, p 2 , rises high enough (and nothing else changes), Blackbeard will stop buying bread, x 2 , completely. If the price of grog, p 1 , rises high enough (and nothing else changes), Blackbeard will stop buying grog, x 1 , completely. If the price of grog, p 1 , rises high enough (and nothing else changes), Blackbeard will stop buying bread, x 2 , completely. If the price of

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