Homework Help is Here – Start Your Trial Now!
Business
Economics
A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) 895-11x, 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). 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 41c OB. Less than 41c OC. Prices are elastic at all values. OD. Prices cannot be elastic in this case d) At what prices is the elasticity of demand inelastic? OA. Prices cannot be inelastic in this case OB. Less than 41e OC. Greater than 41 OD. Prices are inelastic al all values e) At what price is the revenue a maximum? x= 0- (Round to the nearest cent as needed. Use a comma to separate answers as needed.) At a price of 17¢ per cookie, will a small increase in price cause the total revenue to increase or decrease? Decrease O Increase

A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) 895-11x, 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). 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 41c OB. Less than 41c OC. Prices are elastic at all values. OD. Prices cannot be elastic in this case d) At what prices is the elasticity of demand inelastic? OA. Prices cannot be inelastic in this case OB. Less than 41e OC. Greater than 41 OD. Prices are inelastic al all values e) At what price is the revenue a maximum? x= 0- (Round to the nearest cent as needed. Use a comma to separate answers as needed.) At a price of 17¢ per cookie, will a small increase in price cause the total revenue to increase or decrease? Decrease O Increase

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) 895-11x, 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). 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 41c OB. Less than 41c OC. Prices are elastic at all values. OD. Prices cannot be elastic in this case d) At what prices is the elasticity of demand inelastic? OA. Prices cannot be inelastic in this case OB. Less than 41e OC. Greater than 41 OD. Prices are inelastic al all values e) At what price is the revenue a maximum? x= 0- (Round to the nearest cent as needed. Use a comma to separate answers as needed.) At a price of 17¢ per cookie, will a small increase in price cause the total revenue to increase or decrease? Decrease O Increase
Transcribed Image Text:A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) 895-11x, 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). 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 41c OB. Less than 41c OC. Prices are elastic at all values. OD. Prices cannot be elastic in this case d) At what prices is the elasticity of demand inelastic? OA. Prices cannot be inelastic in this case OB. Less than 41e OC. Greater than 41 OD. Prices are inelastic al all values e) At what price is the revenue a maximum? x= 0- (Round to the nearest cent as needed. Use a comma to separate answers as needed.) At a price of 17¢ per cookie, will a small increase in price cause the total revenue to increase or decrease? Decrease O Increase
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS