10. Goods x1 and x2 are gross complements,
a. Only if u(x1, x2) = min{x1, x2}
b. If the derivative of the demand of x1 with respect to p2 is
positive.
c. If the derivative of the demand of x1 with respect to p2 is negative.
d. If the derivative of the demand of x1 with respect to p1 is positive. e. If the derivative of the demand of x1 with respect to p1 is negative.
10.
Since complements goods are those goods which are used together and there is no utility or value of single goods.
It means when there are different number of two goods, then the good will be used only equal to the minimum of the two goods because these goods can be used together only.
Hence if Goods x1 and x2 are gross complements,
These can be expressed in the form of
u(x1, x2) = min{x1, x2}
X1=X2
Hence option a is the correct answer.
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