A bakery works out a demand function for its chocolate chip cookies and finds it to be , where is the quantity of cookies sold when the price per cookie, in cents, is . 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?
1. Prices are elastic at all values
2. Prices cannot be elastic in this case
3. Greater than 16c 4. Less than 16c
d) At what prices is the elasticity of demand inelastic?
1. Prices cannot be inelastic in this case
2. Greater than 16c
3. Less than 16c
4. Prices are inelastic at all values
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 22 per cookie, will a small increase in price cause the total revenue to increase or decrease?
1. Decrease
2. Increase

John and daphne are saving for their daughter ellen's college education. ellen just turned 10 at (t = 0), and she will be entering college 8 years from now (at t = 8). college tuition and expenses at state u. are currently $14,500 a year, but they are expected to increase at a rate of 3.5% a year. ellen should graduate in 4 years--if she takes longer or wants to go to graduate school, she will be on her own. tuition and other costs will be due at the beginning of each school year (at t = 8, 9, 10, and 11).so far, john and daphne have accumulated $15,000 in their college savings account (at t = 0). their long-run financial plan is to add an additional $5,000 in each of the next 4 years (at t = 1, 2, 3, and 4). then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. they expect their investment account to earn 9%. how large must the annual payments at t = 5, 6, and 7 be to cover ellen's anticipated college costs? a. $1,965.21b. $2,068.64c. $2,177.51d. $2,292.12e. $2,412.76