3. Show that the constant elasticity of substitution utility function U(x₁,x₂) = [α₂x₁° + α₂x²° ]¯½ is homogenous of degree one. Verify that Euler's theorem holds for this function.
3. Show that the constant elasticity of substitution utility function U(x₁,x₂) = [α₂x₁° + α₂x²° ]¯½ is homogenous of degree one. Verify that Euler's theorem holds for this function.
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter9: Multivariable Calculus
Section9.2: Partial Derivatives
Problem 48E
Related questions
Question
Answer it fast please
![3. Show that the constant elasticity of substitution utility function
U(x₁,x₂) = [α₂x₁° + α₂x²° ]¯½
is homogenous of degree one. Verify that Euler's theorem holds for this function.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b7e2d2e-0da3-4433-bc78-ef3d7722dfc4%2F20fb68dd-5f23-4812-82e5-c977275ae7af%2Fae5rqju_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Show that the constant elasticity of substitution utility function
U(x₁,x₂) = [α₂x₁° + α₂x²° ]¯½
is homogenous of degree one. Verify that Euler's theorem holds for this function.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Calculus For The Life Sciences](https://www.bartleby.com/isbn_cover_images/9780321964038/9780321964038_smallCoverImage.gif)
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
![Calculus For The Life Sciences](https://www.bartleby.com/isbn_cover_images/9780321964038/9780321964038_smallCoverImage.gif)
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage