YouIf demand is given by q=5P ^-2 where q is quantity demanded and P is price, what isthe price elasticity of demandA) -0.5B) -5C) -2.5D) -2E) -0.4

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YouIf demand is given by q=5P ^-2 where q is quantity demanded and P is price, what isthe price elasticity of demandA) -0.5B) -5C) -2.5D) -2E) -0.4
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Solution 1

The price elasticity of demand is calculated using the formula:

Elasticity = (dq/dP)*(P/q)

Given the demand function q = 5P^-2, we can first find dq/dP, which is the derivative of the demand function with respect to P.

The derivative of q with respect to P is dq/dP = -10P^-3.

Substituting dq/dP Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

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Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
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YouIf demand is given by q=5P ^-2 where q is quantity demanded and P is price, what isthe price elasticity of demandA) -0.5B) -5C) -2.5D) -2E) -0.4

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