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CES Utility function. Finding Elasticity of substitution of CES Utility function
CES Utility Function Explained CES Utility function The Constant Elasticity of Substitution (CES) utility function is a mathematical representation used in economics to model the behavior of consumers or firms in a market. The CES function is defined as: U(x1,x2,...,xn) = (∑(x^r_i)^(1/r))^r where x1, x2, ..., xn are the quantities of ...
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