00:01
And this question, we are once again asked to figure out the elasticity given a demand price curve.
00:12
So in this case, this is a real -life example involving oil.
00:16
So we got very nasty numbers.
00:19
We get q equals 2 ,431 ,129.
00:26
So there's 1 ,000 separators in there.
00:29
P to the power of 0 .0 is negative 0 .06.
00:38
Let's write that a little bit lower so that it fits on the screen.
00:44
Okay, so for elasticity, the first step is always to find the derivative, tq, d p, which in this case will be minus 0 .06 times 2 .4 3112 ,9.
01:03
So i'll use commas.
01:05
I'll try to remember to use commas as decimal separators and dots as thousand separators.
01:12
And we have p, so it's one exponent lower, so we get this as an exponent.
01:25
If you have p to the something and you take its derivative, you get that something in front, the minus 0 .06, and the exponent becomes one lower.
01:34
Okay, now we have dqdp...