Suppose our tastes can be represented by the function $u \left( x _ { 1 } , x _ { 2 } \right) = \left( \alpha x _ { 1 } ^ { - \rho } + ( 1 - \alpha ) x _ { 2 } ^ { - \rho } \right) ^ { - 1 / \rho }$ .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.)

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The Answer of Suppose our tastes can be represented by the function $u \left( x _ { 1 } , x _ { 2 } \right) = \left( \alpha x _ { 1 } ^ { - \rho } + ( 1 - \alpha ) x _ { 2 } ^ { - \rho } \right) ^ { - 1 / \rho }$ .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.)

Suppose Our Tastes Can Be Represented by the Function u(x1,x2)=(αx1−ρ+(1−α)x2−ρ)−1/ρu \left( x _ { 1 } , x _ { 2 } \right) = \left( \alpha x _ { 1 } ^ { - \rho } + ( 1 - \alpha ) x _ { 2 } ^ { - \rho } \right) ^ { - 1 / \rho }u(x1​,x2​)=(αx1−ρ​+(1−α)x2−ρ​)−1/ρ

Suppose Our Tastes Can Be Represented by the Function $u \left( x _ { 1 } , x _ { 2 } \right) = \left( \alpha x _ { 1 } ^ { - \rho } + ( 1 - \alpha ) x _ { 2 } ^ { - \rho } \right) ^ { - 1 / \rho }$