Question: Suppose the demand function is =10/p - 2+ 20and thatincreases from 1 to 2. a) Find the arc elasticity of demand for the given increase

Suppose the demand function is =10/p - 2+ 20and thatincreases from 1 to 2.

a) Find the arc elasticity of demand for the given increase in price.

b) Find the point elasticity of demand when = 1.

c) What is the error that arises if we use the point elasticity as an approximation to the arc elasticity?

d) Ifwere to increase from 1 to 3, what would be the error that arises if we used the point elasticity as an approximation to the arc elasticity? Compare that to the size of the error from part (c). What is the reason behind the difference in error sizes?

The major problem I have is the last part.

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