The Demand for Doughnuts at a Bakery Is Given by

question 20

Short Answer

The demand for doughnuts at a bakery is given by , where q is the number of doughnuts sold at a price of p dollars each.
A. Find the elasticity of demand to two decimal places if the price is $0.80.
B. Will revenue be increased by raising or lowering the price?

---

Definitions:

Total Cost

The sum of all costs associated with the production of goods or services, including fixed and variable costs.

Mud Statues

Sculptures or figures crafted from mud, often associated with certain cultural traditions or artistic practices.

Variable Cost

Outlays that adjust in accordance with the volume of production or output, like materials and labor costs.

Loan

A sum of money that is borrowed and expected to be paid back with interest.