To find the Elasticity of Demand (E) based on the demand function, we'll follow these steps:

Step 1: Understanding Elasticity of Demand Formula

Elasticity of demand (E) is defined as:

$E(p) = \left( \frac{p}{q(p)} \right) \times \frac{dq}{dp}$

Where:

• $p$ is the price,
• $q(p)$ is the demand function,
• $\frac{dq}{dp}$ is the derivative of the demand function with respect to price.

Step 2: Find the Demand Function

First, you must provide the demand function $q(p)$ to calculate the elasticity. Without this, I cannot compute the derivative or find the elasticity.

Could you provide the specific form of the demand function $q(p)$? After that, I can help you with the complete calculation.

Once you provide that:

• I will find the derivative $\frac{dq}{dp}$,
• Then calculate the elasticity function $E(p)$,
• Finally, I will compute $E(7)$, the elasticity at $p = 7$.

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Here are 5 related questions:

1. How is the demand function typically derived in economics?
2. What is the interpretation of elasticity values greater than 1, less than 1, or equal to 1?
3. Can you explain how the price elasticity affects revenue?
4. What are the differences between elastic and inelastic demand?
5. How does elasticity vary with different types of goods (luxury vs necessity)?

Tip: When calculating elasticity, remember that negative values indicate inelastic demand, meaning price changes have less effect on demand.