10.11 The elasticity of substitution and input demand elasticities The definition of the (Morishima) elasticity of substitution (Equation 10.51) can also be described in terms of input demand elasticities. This illustrates the basic asymmetry in the definition.

=

a. Show that if only w, changes, six-x =

b. Show that if only w, changes, &,,,, - Ex

c. Show that if the production function takes the general CES form q=1 for p0, then all of the Morishima elasticities are the same: 1/(1-p) =. This is the only case in which the Morishima definition is symmetric.