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Question: homework 2 demand and consumer choice 1 a comme restaurants...

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Homework 2. Demand and Consumer Choice 1. A comme restaurants rcial bakery faces the following daily firm-level demand, supplying its cakes to the local area 7 60 100 145 a) Suppose, currently the owner thinks that a fair price for a cake is $20 and the bakery can produce and If not, how sell 145 cakes at this price every day. At the end of the day will all cakes be sold? many cakes will be sold? b) How many cakes will be bought at the price of $15?. at 7? c) If the bakery wanted to maximize its revenue (R-p*Qs, price times quantity demanded), which of the three prices ($20, $15, or $7) will allow it to do so? Provide calculations of the revenue below. What recommendation(s) could you give to the bakery if they want to sell 145 cakes per day and charge $20 per cake? d) e) Provide 2 specific examples of demand changes (increase, decrease) for such business as a bakery. Indicate the applicable demand shifter, and tell whether your example would be an increase or a decrease in demand.
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