Power formula question

[Mr2017]

Hi

I've got a spreadsheet where the power formula is used to work out the elasticity of a product.

The value of cell B8 is 1,600 units and the formula in that cell is =$B$4*POWER($A8,$B$2)

where
B4 = 100 (and is the number of average units sold at $1)
A8 = 0.25 cents (and is the price of the product)
B2 = -2 (and is the elasticity of the product)

I've never used power formulas before in Excel, so it would be good to know how they work from someone who has.

I know how power formulas work in general e.g. 2 to the power of 2 is obviously 2 squared which is equal to 4.

But how would the power formula work in this instance? Why are there two values in brackets after the power equation, instead of one?

TIA.

 

[SpillerBD]

https://support.office.com/en-us/article/POWER-function-D3F2908B-56F4-4C3F-895A-07FB519C362A

POWER(0.25,-2) = 0.25^-2
(1/4)^-2 = 4^2
4^2 = 16

 

[Tetra201]

It's the same as

=$B$4*$A8^$B$2

 

[Mr2017]

Ok, thank you SpillerBD and Tetra201.

Your help is much appreciated.

 

[Tetra201]

You are welcome.