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Deffense [45]
3 years ago
7

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 quan

tity 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?
Business
1 answer:
zaharov [31]3 years ago
4 0

Answer:

13x ÷ 760 - 13x

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

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Answer:

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4 years ago
Butler Corporation is considering the purchase of new equipment costing $84,000. The projected annual after-tax net income from
torisob [31]

Answer:

The net present value of the machine is $5530

Explanation:

Data provided in the question:

Cost of the equipment = $84,000

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Therefore,

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hence,

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