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

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 and the demand function into the elasticity formula gives:

Elasticity = (-10P^-3)*P/(5P^-2) = -2P^-1 = -2/P.

Therefore, the price elasticity of demand is not constant but depends on the price P. None of the options A) -0.5, B) -5, C) -2.5, D) -2, E) -0.4 are correct as the elasticity is not a constant value but a function of price.