Final answer:
To find the instantaneous rate of change of demand when the price is $2, we need the values of quantity demanded (Qd) at two different prices close to $2. The instantaneous rate of change can be calculated using the formula: (Qd2 - Qd1) / (P2 - P1).
Step-by-step explanation:
The instantaneous rate of change of demand is the slope of the demand curve at a specific point. To find the instantaneous rate of change of demand when the price is $2, we need the values of quantity demanded (Qd) at two different prices close to $2. Let's say we have Qd values of 5000 and 4000 when the prices are $1.80 and $2.20 respectively. The instantaneous rate of change can be calculated using the formula:
Instantaneous rate of change = (Qd2 - Qd1) / (P2 - P1)
Substituting the values, we get:
(4000 - 5000) / (2.20 - 1.80) = -1000 / 0.4 = -2500 .