Suppose that the demand of a certain item is x=10+(1/p^2). Evaluate the elasticity at 0.7?

Question

Evaluate the given elasticity with function.

Answer 1

Q(p) = 10 + p^(-2)

Q'(p) = dX/dP = = -2 * p^(-3)

Q'(0.7) = -2 * (0.7)^(-3) = -2 / (0.7 * 0.7 * 0.7) = -5.8309037900+

not very stable