A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 846 - 23x, where q is the quantity of cookies sold when the price per cookie, in cents, is x. Use this information to answer parts a) through f). WWE a) Find the elasticity. E(x) = b) At what price is the elasticity of demand equal to 1? ¢ (Round to the nearest cent as needed.) c) At what prices is the elasticity of demand elastic? OA. Greater than 18¢ OB. Prices cannot be elastic in this case OC. Prices are elastic at all values D. Less than 18¢ d) At what prices is the elasticity of demand inelastic? O A. Prices are inelastic at all values OB. Less than 18¢ OC. Greater than 18¢ e) At what price is the revenue a maximum? \[ x= \] (Round to the nearest cent as needed. Use a comma to separate answers as needed.) f) At a price of 13∈ / per cookie, will a small increase in price cause the total revenue to increase or decrease? Increase Decrease
A bakery works out a
e) At what price is the revenue a maximum? \[ x= \] (Round to the nearest cent as needed. Use a comma to separate answers as needed.) f) At a price of
13∈
/
per cookie, will a small increase in price cause the total revenue to increase or decrease? Increase Decrease
Step by step
Solved in 5 steps with 6 images
