Schneider's Bakery sells cakes. At a price of $20 per cake, it sells 500 cakes per...

Schneider's Bakery sells cakes. At a price of $20 per cake, it sells 500 cakes per week. At a price of $40, it sells 300 cakes per week.

(a) (2.5 points) Find a linear demand function ?(?)D(x) that models this situation.

(b) (2.5 points) Find the elasticity of demand.

(d) (2.5 points) Using the linear demand function from part (a), find the price ?x that results in unit elasticity, and explain what this number represents. Also, determine the weekly revenue at this price.

Solutions

Expert Solution

I have used E with sign. Some also do not. Both practices are followex.

Appreciate feedback.

milcah answered 1 year ago

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