IB skill practice

Calculate price elasticity of demand

Use derivative information to calculate elasticity at a point.

Paper 1, Paper 2 5 marks Difficulty 4

Calculate price elasticity of demand - technology-output use

For a sports performance audit demand model, price is \(29\), quantity is \(82\), and \(\frac{dQ}{dP}=-2.5\). Calculate price elasticity \(\frac{dQ}{dP}\frac{P}{Q}\). Confirm the interpretation before entering the result. Enter the requested value and choose the interpretation that matches the result.

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