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

Question 29

Multiple Choice

Consider a model of inter-temporal choice, with utility function u(c1,c2) u\left(c_{1}, c_{2}\right) . If c1c_{1} and c2c_{2} are complements then which of the following must be true?


A) u(c1,c2) c1>0\frac{\partial u\left(c_{1}, c_{2}\right) }{\partial c_{1}}>0
B) u(c1,c2) c2<0\frac{\partial u\left(c_{1}, c_{2}\right) }{\partial c_{2}}<0
C) 2u(c1,c2) c1c2>0\frac{\partial^{2} u\left(c_{1}, c_{2}\right) }{\partial c_{1} \partial c_{2}}>0
D) 2u(c1,c2) c1c2<0\frac{\partial^{2} u\left(c_{1}, c_{2}\right) }{\partial c_{1} \partial c_{2}}<0

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