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Suppose a consumer with well-behaved preferences consumes n>2 goods. Use the Slutsky equation to determine (with explanations!): a. If (i) xi and xj are both
Suppose a consumer with well-behaved preferences consumes n>2 goods. Use the Slutsky equation to determine (with explanations!): a. If (i) xi and xj are both normal goods, and (ii) xi and xj are net complements, then must xi and xj be gross complements as well? b. If (i) xi and xj are both normal goods, and (ii) xi and xj are gross complements, then must xi and xi be net complements as well? Suppose a consumer with well-behaved preferences consumes n>2 goods. Use the Slutsky equation to determine (with explanations!): a. If (i) xi and xj are both normal goods, and (ii) xi and xj are net complements, then must xi and xj be gross complements as well? b. If (i) xi and xj are both normal goods, and (ii) xi and xj are gross complements, then must xi and xi be net complements as well
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