6. Elasticity and total revenueThe following graph shows the daily demand curve for bikes in Chicago.Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.Note: You will not be graded on any changes made to this graph. Use the green rectangle (triangie symbols) to compute total revenue at various prices along the demand curve.Note: You will not be graded on any changes made to this graph.Z75250Total Revenue2252001751501251007525Demand121824 3 164254 00 0gT2QUANTITY (Bkes)On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150,$175, and $200 per bike.SSEDTotal Revenue540w 444030002520204025100 125 150 15 200 22s no am 30075PRICE (Dollars per bike)According to the midpoint method, the price elasticity of demand between points A and B is approximatelySuppose the price of bikes is ourrently $125 per bike, shown as point A on the initial graph. Because the demand between points A and B isa $25-per-bike decrease in price will lead toin total revenue per day.In general, in order for a price increase to cause an increase in total revenue, demand must beTOTAL REVENUE (Dolilars)(awg jad sueogl 3D1Hd

Elasticity and total revenue The following graph shows the daily demand curve for bikes in Chicago. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand

Elasticity and total revenue The following graph shows the daily demand curve for bikes in Chicago. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter1A: Appendix: Working With Graphs

Section: Chapter Questions

Problem 1E

See similar textbooks

6. Elasticity and total revenue

The following graph shows the daily demand curve for bikes in Chicago.

Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.

Note: You will not be graded on any changes made to this graph.

Use the green rectangle (triangie symbols) to compute total revenue at various prices along the demand curve.
Note: You will not be graded on any changes made to this graph.
Z75
250
Total Revenue
225
200
175
150
125
100
75
25
Demand
12
18
24 3 16
42
54 00 0g
T2
QUANTITY (Bkes)
On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150,
$175, and $200 per bike.
SSED
Total Revenue
540
w 4440
3000
2520
2040
25
100 125 150 15 200 22s no am 300
75
PRICE (Dollars per bike)
According to the midpoint method, the price elasticity of demand between points A and B is approximately
Suppose the price of bikes is ourrently $125 per bike, shown as point A on the initial graph. Because the demand between points A and B is
a $25-per-bike decrease in price will lead to
in total revenue per day.
In general, in order for a price increase to cause an increase in total revenue, demand must be
TOTAL REVENUE (Dolilars)
(awg jad sueogl 3D1Hd

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