Consider the Utility Function $u \left( x _ { 1 } , x _ { 2 } \right) = \left( \alpha x _ { 1 } ^ { - \rho } + ( 1 - \alpha ) x _ { 2 } ^ { - \rho } \right) ^ { - 1 / \rho }$

question 6

True/False

Consider the utility function $u \left( x _ { 1 } , x _ { 2 } \right) = \left( \alpha x _ { 1 } ^ { - \rho } + ( 1 - \alpha ) x _ { 2 } ^ { - \rho } \right) ^ { - 1 / \rho }$ .If $\rho = 0$ ,the elasticity of substitution is equal to 1.
The elasticity of substitution for CES utility functions is $\frac { 1 } { 1 + \rho }$ .

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Definitions:

High Risk Situations

Scenarios or conditions that significantly increase the likelihood of engaging in unhealthy or harmful behaviors.

Personal Strengths

Individual attributes or qualities that contribute to one’s ability to succeed or excel in certain activities or pursuits.

Stress Times

Periods or situations of heightened tension, pressure, or stress, often requiring increased coping mechanisms or support.

Relapse

The return to a previous state of disease or undesirable behavior after a period of improvement or abstinence, especially in the context of addiction.