Question
A bakery works out a demand function for its chocolate chip cookies and finds it to...
A bakery works out a demand function for its chocolate chip cookies and finds it to be q=D(x)=832−20x, where q is the quantity of cookies sold when the price per cookie, in cents, is x. Use this information to answer parts a) through f).
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?
D) At what prices is the elasticity of demand inelastic?
E) At what price is the revenue a maximum?
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Answer #1
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