Mathematics, 08.03.2021 20:00 glocurlsprinces
A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 760 - 13x, where 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?
C) At what prices is the elasticity of demand elastic?
A. Prices are elastic at all values.
B. Prices cannot be elastic in this case.
C. Greater than.
D. Less than .
D) At what prices is the elasticity of demand inelastic?
A. Greater than.
B. Less than.
C. Prices are inelastic at all values.
D. Prices cannot be inelastic in this case.
E) At what price is the revenue a maximum?
F) At a price of ¢ per cookie, will a small increase in price cause the total revenue to increase or decrease?
A. Increase.
B. Decrease.
Answers: 1
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A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 76...
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