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steps would be helpful 3. Suppose that U = (0.2q1 1 + 0.8q2 1)-1 i. What is the elasticity of substitution? ii. If q1=0.5, and

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3. Suppose that U = (0.2q1 1 + 0.8q2 1)-1 i. What is the elasticity of substitution? ii. If q1=0.5, and q2 = 1, what are the absolute and relative income shares of each good? iii. What if now qi rises to 1? Is this consistent with your finding about the elasticity of substitution? Explain. iv. Write the regression equation whose results will give you the result you found in part 'a" above. Assume the intercept term to be do

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