Consider a model of inter-temporal choice, with utility function $u\left(c_{1}, c_{2}\right)$. If $c_{1}$ and $c_{2}$ are complements then which of the following must be true? A) $\frac{\partial u\left(c_{1}, c_{2}\right)}{\partial c_{1}}0$ B) $\frac{\partial u\left(c_{1}, c_{2}\right)}{\partial c_{2}}0$ D) $\frac{\partial^{2} u\left(c_{1}, c_{2}\right)}{\partial c_{1} \partial c_{2}}

Question

Consider a model of inter-temporal choice, with utility function $u\left(c_{1}, c_{2}\right)$. If $c_{1}$ and $c_{2}$ are complements then which of the following must be true? A) $\frac{\partial u\left(c_{1}, c_{2}\right)}{\partial c_{1}}>0$ B) $\frac{\partial u\left(c_{1}, c_{2}\right)}{\partial c_{2}}<0$ C) $\frac{\partial^{2} u\left(c_{1}, c_{2}\right)}{\partial c_{1} \partial c_{2}}>0$ D) $\frac{\partial^{2} u\left(c_{1}, c_{2}\right)}{\partial c_{1} \partial c_{2}}<0$

Quizplus · Accepted Answer

The Answer of Consider a model of inter-temporal choice, with utility function $u\left(c_{1}, c_{2}\right)$. If $c_{1}$ and $c_{2}$ are complements then which of the following must be true? A) $\frac{\partial u\left(c_{1}, c_{2}\right)}{\partial c_{1}}>0$ B) $\frac{\partial u\left(c_{1}, c_{2}\right)}{\partial c_{2}}<0$ C) $\frac{\partial^{2} u\left(c_{1}, c_{2}\right)}{\partial c_{1} \partial c_{2}}>0$ D) $\frac{\partial^{2} u\left(c_{1}, c_{2}\right)}{\partial c_{1} \partial c_{2}}<0$

Consider a Model of Inter-Temporal Choice, with Utility Function u(c1,c2)u\left(c_{1}, c_{2}\right)u(c1​,c2​)

Consider a Model of Inter-Temporal Choice, with Utility Function $u\left(c_{1}, c_{2}\right)$