Show the working for this step please

2. The intertemporal elasticity of substitution between consumption in the two periods is -[(P/P2)/(C/C2)][(C1/C2)/0(P/ P2)], or -Oln(C1/C2)/Oln(P/P2). Show that with the utility function, the intertemporal elas- ticity of substitution between C, and C2 is 1/8. Solution: From the first-order conditions: -1/0 = (1+p)1/e PI Take logs: In (@) = =In(1+ p) - In ( The intertemporal elasticity of substitution between the consumption in two period is: Oln (C1/C2) O ln (P1/ P2)