Science:Math Exam Resources/Courses/MATH104/December 2011/Question 05 (a)/Statement

In the following figure, the curved graph is a demand curve where q is the demand and p is the price in dollars. The straight line is the tangent line to this demand curve at the point (p,q) = (2,6). Recall that the price elasticity of demand is given by

$\epsilon (p)={\frac {p}{q}}{\frac {dq}{dp}}$

(a) Comput $\epsilon (2)$, the elasticity at price $2.