Of All the Constant Elasticity of Substitution Social Welfare Function

question 13

True/False

Of all the constant elasticity of substitution social welfare function, only the one with elasticity of infinity will always choose the efficient outcome from a second-best consumption possibility frontier.

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Definitions:

Imaginary Unit

A mathematical constant represented as i, which is the square root of -1.

Demand Equation

Represents the relationship between the quantity demanded of a good and its price, often used in economics to predict consumer behavior.

Units Demanded

The quantity of a particular good or service that consumers are willing and able to purchase at a given price.

Multiply

The operation of repeated addition of the same number.