A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 777-24x, 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. E(X)= b) At what price is the elasticity of demand equal to 1? e (Round to the nearest cent as needed.) c) At what prices is the elasticity of demand elastic? OA. Greater than 16 O B. Prices cannot be elastic in this case OC. Prices are elastic at all values. O D. Less than 16g
A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 777-24x, 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. E(X)= b) At what price is the elasticity of demand equal to 1? e (Round to the nearest cent as needed.) c) At what prices is the elasticity of demand elastic? OA. Greater than 16 O B. Prices cannot be elastic in this case OC. Prices are elastic at all values. O D. Less than 16g
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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/16 I tried this but failed can smoneone explain to me
![A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 777-24x, 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.
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?
O A. Greater than 16¢
O B.
O C.
O D. Less than 16¢
Prices cannot be elastic in this case
Prices are elastic at all values.
d) At what prices is the elasticity of demand inelastic?
O A. Less than 16¢
OB. Prices cannot be inelastic in this case
O C. Prices are inelastic at all values
O D. Greater than 16¢
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 17¢ per cookie, will a small increase in price cause the total revenue to increase or decrease?
o
Increase
C Decrease](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8228a27d-6ea5-441c-bf71-b61e4ad47cce%2Ffb514ee1-2be5-4bb8-a07a-65948c6e4a74%2Fxs1z6eb_processed.png&w=3840&q=75)
Transcribed Image Text:A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 777-24x, 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.
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?
O A. Greater than 16¢
O B.
O C.
O D. Less than 16¢
Prices cannot be elastic in this case
Prices are elastic at all values.
d) At what prices is the elasticity of demand inelastic?
O A. Less than 16¢
OB. Prices cannot be inelastic in this case
O C. Prices are inelastic at all values
O D. Greater than 16¢
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 17¢ per cookie, will a small increase in price cause the total revenue to increase or decrease?
o
Increase
C Decrease
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