diff --git a/Week 2- Representative Consumer and Bertrand/representative_consumer.tex b/Week 2- Representative Consumer and Bertrand/representative_consumer.tex index 507e8ff..0614af4 100644 --- a/Week 2- Representative Consumer and Bertrand/representative_consumer.tex +++ b/Week 2- Representative Consumer and Bertrand/representative_consumer.tex @@ -58,7 +58,7 @@ \end{frame} \begin{frame}{Brief Aside: Constant Elasticity Demand} -Using the overall price index $P =\left( \int_{0}^J p(\omega_1)^{1-\sigma} d\, \omega_1 \right)^{\frac{1}{\rho}}$, we can re-write Marshallian demand: +Using the overall price index $P =\left( \int_{0}^J p(\omega_1)^{1-\sigma} d\, \omega_1 \right)^{\frac{1}{1-\sigma}}$, we can re-write Marshallian demand: \begin{eqnarray*} q(\omega) &=& p(\omega)^{-\sigma} P^{\sigma-1} I = \left(\frac{p(\omega)}{P}\right)^{-\sigma} \frac{I}{P} \end{eqnarray*}