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
Question
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 is a powerful AI-powered study tool designed to help you to solve study problem.
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