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