Question

A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 760 - 13x. where q is the quantity of cookies sold when the price per cookie, in cents, is x. Find the elasticity At what price is the elasticity of demand equal to 1?

Answer 1

13x ÷ 760 - 13x

Step-by-step explanation:

The compuatation is shown below:

Data provided in the question

Price per cookie = X

And, the quantity of cookies sold is

q = D(x) = 760 - 13x

Based on the above information, the price elasticity of demand equal to 1 is

We have to use the derivative

D'x = -13

Now the elasticity is

= x. D'x ÷ D(x)

= {x. (-13)} ÷ {760 - 13x}

= 13x ÷ 760 - 13x