A bakery works out a demand function for its chocolate chip cookies and finds it to be q= D(X)=655-12x, where is the quantity of cookies sold when the price per cookie, in cents, is x. Use this information to answer parts a) through f). Find the elasticity. E(x)= __ Part 2 b) At what price is the elasticity of demand equal to 1? __¢ (Round to the nearest cent as needed.) Part 3 c) At what prices is the elasticity of demand elastic? A. Greater than 27¢ B. Prices cannot be elastic in this case C. Less than 27¢ D. Prices are elastic at all values.
Please no written by hand and no emage
A bakery works out a demand function for its chocolate chip cookies and finds it to be q= D(X)=655-12x, where is the quantity of cookies sold when the price per cookie, in cents, is x. Use this information to answer parts a) through f).
Find the elasticity.
E(x)= __
Part 2
b) At what
__¢
(Round to the nearest cent as needed.)
Part 3
c) At what prices is the elasticity of demand elastic?
A.
Greater than 27¢
B.
Prices cannot be elastic in this case
C.
Less than 27¢
D.
Prices are elastic at all values.
Part 4
d) At what prices is the elasticity of demand inelastic?
A.
Less than 27¢
B.
Prices are inelastic at all values
C.
Greater than 27¢
D.
Prices cannot be inelastic in this case
Part 5
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.)
Part 6
f) At a price of 22¢ per cookie, will a small increase in price cause the total revenue to increase or decrease?
Increase
Decrease
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