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?
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter2: Functions
Section2.4: Average Rate Of Change Of A Function
Problem 4.2E: bThe average rate of change of the linear function f(x)=3x+5 between any two points 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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