1. 

   vidhya36 Very Active Member

   In X1.3, how did they substitute dq/dp as -1/p^2? Also the last step.
   I am missing some simple logic.
   Can somebody help me here?

    

   vidhya36, Apr 8, 2015

   #1
2. 

   Gresham Arnold ActEd Tutor Staff Member

   Hi vidhya36
   
   I think we can rearrange option b to say Q=1/P
   
   So differentiating this wrt to P we get dQ/dP=-1/P^2
   
   Then in the last step, elasticity = -1/PQ and if Q=1/P then elasticity = -1P/P = -1
   
   Does that help?
   
   Gresham

    

   Gresham Arnold, Apr 9, 2015

   #2
3. 

   vidhya36 Very Active Member

   Ahhhh.... Yes, very much.
   Thank you.

    

   vidhya36, Apr 10, 2015

   #3

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