On the following graph, use the green point (triangle symbol) to plot the daily total revenue when the market price is $50, $75, $100, $125, $150,$175, and $200 per bippitybop.21802040Total Revenue1900176016201480134012001060920255075100 125 150 175 200 225 250 275 300PRICE (Dollars per bippitybop)According to the midpoint method, the price elasticity of demand between points A and B on the initial graph is approximatelySuppose the price of bippitybops is currently $50 per bippitybop, shown as point B on the initial graph. Because the price elasticity of demand betweenpoints A and B isa $25-per-bippitybop increase in price will lead toin total revenue per day.In general, in order for a price decrease to cause a decrease in total revenue, demand must beTOTAL REVENUE (Dollars) 6. Elasticity and total revenue IThe following graph shows the daily demand curve for bippitybops in Halifax.Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.Note: You will not be scored on any changes made to this graph.300275250Total Revenue225200175 +150125100755025Demand36.1215182124273033 36QUANTITY (Bippitybops per day)PRICE (Dollars per bippitybop)

Blanks: 0.33 Inelastic, increase Inelastic

Answered: 6. Elasticity and total revenue I The…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 13P: A movie production company faces a linear demand curve for its film, and it seeks to maximize total...

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