Answer :
Final answer:
The question asks to determine the point elasticity of demand and supply for iPhones at equilibrium. However, the provided information contains discrepancies and is incomplete, making it impossible to accurately calculate the elasticity without additional correct data.
Explanation:
The question relates to calculating the point elasticity of demand and supply at equilibrium. The equations provided represent the inverse demand and supply curves for iPhones, and the task is to find the elasticity of each at the equilibrium price and quantity. The point elasticity of demand is calculated by taking the derivative of the demand function with respect to price, and then multiplying it by the price-quantity ratio at the equilibrium point. Similarly, the elasticity of supply is found by differentiating the supply function with respect to price and then applying the same price-quantity ratio.
Using the information provided and the standard elasticity formulas, we could confirm the correct elasticity values presented in the question options. However, since there is no numerical equilibrium point given in the question and there is a mismatch with the provided functions, it would not be possible to validate the values of elasticity presented without additional correct information. Typically, the procedure involves setting the demand function equal to the supply function, solving for quantity, substituting back to find price, and then applying the elasticity formulas.
