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An individual has the following hicksian demands for goods x and y, which are the only goods they consume: h x = U, h y
An individual has the following hicksian demands for goods x and y, which are the only goods they consume: h x = U, h y = U/2. Which of the following is true: (a) x is a gross substitute and net substitute for y (b) x is a gross complement and net complement for y (c) x is a gross complement and net substitute for y (d) x is a gross complement and neither a net complement or substitute for y COR- RECT ANSWER (e) x is a gross substitute and neither a net complement or substitute for y 13
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