A bakery works out a demand function for its chocolate chip cookies and finds it to be $q = D (x) = 711 - 22 x$ , 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.
$E (x) = \frac{22 x}{711 - 22 x}$
b) At what price is the elasticity of demand equal to 1 ?
(Round to the nearest cent as needed.)

Answer

Expert–verified

Hide Steps

Answer

Final Answer: The price at which the elasticity of demand is equal to 1 is $16.16$ cents.

Steps

Step 1 ：The elasticity function is given by $E (x) = \frac{22 x}{711 - 22 x}$ .

Step 2 ：To find the price at which the elasticity of demand is equal to 1, we need to solve the equation $E (x) = 1$ for $x$ . This gives us the equation $\frac{22 x}{711 - 22 x} = 1$ .

Step 3 ：Solving this equation gives us $x = \frac{711}{44}$ .

Step 4 ：However, the question asks for the answer to be rounded to the nearest cent. So, we round $x$ to get the final price.

Step 5 ：Final Answer: The price at which the elasticity of demand is equal to 1 is $16.16$ cents.

Answer

Popular Problems