If Utility Is Separable in a Three-Good Utility Function X₃

question 18

Multiple Choice

If utility is separable in a three-good utility function x₃


Then for changes in
Must:

• A)both be gross substitutes for x₁.
• B)both be gross complements for x₁.
• C)be such that if one is a gross substitute for x₁,the other is a gross complement for x₁.
• D)both be gross substitutes or both be gross complements for x₁.

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Definitions:

Social

Relating to society, interactions among individuals, or the organization of communities.

Emotional

Pertaining to feelings, where a person's emotional aspect involves their mood, temperament, and ability to express feelings.

Interest

A feeling of curiosity or concern about something or someone, often leading to engagement or investigation.

Peers

Individuals who are similar in age or status within a certain social group.