Final answer:
The quantity demanded on the given demand curve at P = 1 is 2 cups. Elasticity of demand at different price points on the demand curve differs, hence the elasticity between prices falling from 5 to 4 and from 9 to 8 are expected to be different.
Step-by-step explanation:
The question asks about the quantity demanded at a specific price point on a given market demand curve. Since the demand equation provided is P = 2/Q, where P is the price in dollars and Q is the quantity in cups, we have to solve for Q when P equals to 1.
To find the quantity demanded at P = 1, we can set the equation like this: 1 = 2/Q. Solving for Q gives us Q = 2. Therefore, at the price of $1 per cup, the quantity demanded according to the equation is 2 cups.
When it comes to elasticity of demand, which measures how much the quantity demanded responds to a change in price, it can vary depending on where on the demand curve we're looking. The elasticity of demand as price falls from 5 to 4 will generally be different from the elasticity of demand as the price falls from 9 to 8, even for the same product. The reason is that the percentage change in quantity demanded compared to the percentage change in price varies at different points on the curve.