If Utility Is Separable in a Three-Good Utility Function Then for Changes In

question 8

Multiple Choice

If utility is separable in a three-good utility function $\left[ U \left( x _ { 1 } , x _ { 2 } , x _ { 3 } \right) = U _ { 1 } \left( x _ { 1 } \right) + U _ { 2 } \left( x _ { 2 } \right) + U _ { 3 } \left( x _ { 3 } \right) , U _ { i } ^ { \prime } > 0 \quad U _ { i } ^ { \prime } < 0 \right]$ then for changes in $p _ { 1 } , x _ { 2 } \text { and } x _ { 3 } \text { must }$

• 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 x.

---

Definitions:

Insurance Companies

Businesses that provide coverage, in the form of compensation resulting from loss, damage, injury, treatment, or hardship in exchange for premium payments.

Blogosphere

The term for the millions of blogs on the Web.

Consumer-Generated Media

Content created and shared by consumers about products or brands, including reviews, blogs, social media posts, and videos.

Companies' Products

The various goods or services that a company offers to its customers.