Question: 25. A potato chip company determines that the demand function for one brand of its potato chips is given by r = D(p) = 30-p


25. A potato chip company determines that the demand function for one brand of its potato chips is given by r = D(p) = 30-p - p- where p is the price, in dollars, of a bag of potato chips, and r is in hundreds of bags of potato chips sold each month. (a) Find the elasticity function, E(p). b) Find the elasticity at a price of $2.50 per bag, stating whether the demand is elastic or in- elastic at that price. (c) Find the elasticity at a price of $3.60 per bag, stating whether the demand is elastic or in- elastic at that price. (d) Find the price of a bag of potato chips at which the revenue is greatest. (e) What quantity of bags of potato chips will the company sell each month at the price that maximizes revenue? (f) At a price of $3.60 per bag, will a small in- crease in price cause the total revenue to in- base or decrease
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