onsl er e owl ng un (CES) where s 1 and O. It is called the constant elasticity Of substitution (CES) function. (a) Explain why we can rearrange (CES) to the more tractable form without changing the problem we are analyzing, i.e., why both utility functions can represent the same preference relations? (Points: 4/30) Answer: We will talk more about the elasticity of substitution in a future class, as it is a very important concept. For now, assume a consumer has = l and preferences represented by u: (b) Set the utility maximization problem for this consumer using a general budget constraint. (Points: 3/30) Answer: