Business, 10.04.2020 21:44 brooklyns357

A bakery works out a demand function for its chocolate chip cookies and finds it to be q equals Upper D left parenthesis x right parenthesis equals 624 minus 25 xq=D(x)=624−25x, where qq is the quantity of cookies sold when the price per cookie, in cents, is xx. Use this information to answer parts a) through f).

a) Find the elasticity.
E(x)equals=nothing

b) At what price is the elasticity of demand equal to 1?
nothingcents¢ (Round to the nearest cent as needed.)

c) At what prices is the elasticity of demand elastic?

A. Less than 12cents¢
B. Prices cannot be elastic in this case
C. Prices are elastic at all values.
D. Greater than 12cents¢

d) At what prices is the elasticity of demand inelastic?

e) At what price is the revenue a maximum?
xequals=nothingcents¢
(Round to the nearest cent as needed. Use a comma to separate answers as needed.)

f) At a price of 22¢ per cookie, will a small increase in price cause the total revenue to increase or decrease?

1. Decrease

2. Increase

Answers: 3

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