Consider the demand curve Q^d = 500P^-2.If the price is 1,the elasticity of demand is A) -0.50 B) -2 C) 500 D) -500

Name: Consider the demand curve Q d = 500P -2 .If the price is 1,the elasticity of demand is A) -0.50 B) -2 C) 500 D) -500
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Quizplus · Accepted Answer

The elasticity of demand is calculated as the derivative of the demand function with respect to price, multiplied by the price over quantity. For Q^d = 500P^-2, the derivative is -1000P^-3. At P=1, elasticity = (-1000 * 1^-3) * (1 / 500) = -2.

Consider the Demand Curve Qd = 500P-2

Consider the Demand Curve Q^d = 500P^-2