denote rho as the power.Calculate the elasticity of substitution between y and x for F(x,y) = 10x^2 + 15y^2
I was able to calculate the Marginal Rate of Substitution as 20x/30y but I'm not sure how to proceed past that. The answer in the book is -1. Any and all help appreciated!
Sorry but I'm not sure if I follow. Rho? And I believe the book taught us using the formula so I may be a little confused. Thanks for the help!denote rho as the power.
Then elasticity of substitution is
If the power is different, you would have to use the formula.