A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x)=985 - 17x where q is the quantity of cookies sold when the price per cookie, in cents, is x. a) Find the elasticity. b) At what price is the elasticity of demand equal to 1? (Round to nearest cent) c) At what price is the elasticity of demand elastic and at what price is the revenue a maximum? d) At a price of 30 cents per cookie, will a small increase in price cause the total revenue to increase or decrease?
A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x)=985 - 17x where q is the quantity of cookies sold when the price per cookie, in cents, is x. a) Find the elasticity. b) At what price is the elasticity of demand equal to 1? (Round to nearest cent) c) At what price is the elasticity of demand elastic and at what price is the revenue a maximum? d) At a price of 30 cents per cookie, will a small increase in price cause the total revenue to increase or decrease?
Chapter3: Functions
Section3.2: Domain And Range
Problem 61SE: The cost in dollars of making x items is given by the function Cx)=10x+500. a. The fixed cost is...
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Transcribed Image Text:.A bakery works out a demand function for its chocolate chip
cookies and finds it to be q = D(x) = 985 - 17x where q is the
quantity of cookies sold when the price per cookie, in cents, is x.
a) Find the elasticity.
b) At what price is the elasticity of demand equal to 1?
(Round to nearest cent)
c) At what price is the elasticity of demand elastic
and at what price is the revenue a maximum?
d) At a price of 30 cents per cookie, will a small increase in
price cause the total revenue to increase or decrease?
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