Final answer:
Elasticity of demand can be calculated for points on the demand curve P = 2/Q by finding the quantity demanded at different prices and assessing the percentage changes of quantity and price to find the elasticity, which differs at each price point.
Step-by-step explanation:
The elasticity of demand measures how the quantity demanded of a product responds to a change in price. When the demand curve equation is given as P = 2/Q, we can calculate elasticity of demand using the formula for point elasticity, which is (dQ/Q) / (dP/P). As prices change, the elasticity of demand can be different at each point on the curve.
When the price falls from 5 to 4, the initial quantity demanded Q1 can be found by rearranging the equation to Q = 2/P. So, for P = 5, Q1 is 2/5 and for P = 4, Q2 is 2/4. The percentage change in quantity (dQ/Q) and the percentage change in price (dP/P) can then be used to find elasticity.
Similarly, when the price falls from 9 to 8, we repeat the process with the respective prices to find Q1 and Q2, and subsequently the elasticity of demand. Since the demand curve is not linear, we would not expect the elasticity to be the same between different price points. The elasticity is likely to vary because of the different quantities and percentage changes therein.