Suppose our tastes can be represented by the function .It is often observed that people become more rigid --- more set in their ways --- as they get older.What parameter is changing as we get older --- and how is it changing? (Explain.)

Question

Suppose our tastes can be represented by the function  .It is often observed that people become more rigid --- more set in their ways --- as they get older.What parameter is changing as we get older --- and how is it changing? (Explain.)

Quizplus · Accepted Answer

The Answer is The parameter The parameter is increasing from a value as low as -1 to a value as high as --- causing our elasticity of substitution to fall from a value as high as to one as low as 0 as we grow older.

The parameter is increasing from a value as low as -1 to a value as high as --- causing our elasticity of substitution to fall from a value as high as to one as low as 0 as we grow older.

is increasing from a value as low as -1 to a value as high as The parameter is increasing from a value as low as -1 to a value as high as --- causing our elasticity of substitution to fall from a value as high as to one as low as 0 as we grow older.

--- causing our elasticity of substitution to fall from a value as high as The parameter is increasing from a value as low as -1 to a value as high as --- causing our elasticity of substitution to fall from a value as high as to one as low as 0 as we grow older.

to one as low as 0 as we grow older.

Suppose Our Tastes Can Be Represented by the Function