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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. 3180 2940 Tal Revn 2700 2460 2220 1980 1740 1500 A 1260+ O 5 so 75 100 125 150 175 200 225 250 275 300 PRICE (Dallars per bika) According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of bikes is currently $125 per bike, shown as point A on the Inital graph. Because the demand between points A and B is a $25-per-bike decrease in price will lead to v 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 (Dalars)

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. 3180 2940 Tal Revn 2700 2460 2220 1980 1740 1500 A 1260+ O 5 so 75 100 125 150 175 200 225 250 275 300 PRICE (Dallars per bika) According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of bikes is currently $125 per bike, shown as point A on the Inital graph. Because the demand between points A and B is a $25-per-bike decrease in price will lead to v 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 (Dalars)

Exploring Economics
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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On the following graph, use the green polnt (triangle symbol) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150, $175, and $200 per bike. 3180 2940 Tatal Revane 2700 2460 2220 1980 1740 1500 A 1260 1020 ++ 25 50 75 100 125 150 175 200 225 250 275 300 PRICE (Dallars par bika) According to the midpolnt method, the price elasticity of demand between polnts A and B Is approximately Suppose the price of bikes is currently $125 per bike, shown as polnt A on the Initial graph. Because the demand between polnts 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 (Dallars)
Transcribed Image Text:On the following graph, use the green polnt (triangle symbol) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150, $175, and $200 per bike. 3180 2940 Tatal Revane 2700 2460 2220 1980 1740 1500 A 1260 1020 ++ 25 50 75 100 125 150 175 200 225 250 275 300 PRICE (Dallars par bika) According to the midpolnt method, the price elasticity of demand between polnts A and B Is approximately Suppose the price of bikes is currently $125 per bike, shown as polnt A on the Initial graph. Because the demand between polnts 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 (Dallars)
3. Elasticity and total revenue The following graph shows the dally demand curve for bikes In Detrolt. 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. 300 275 250 Tatal Revenu 225 200 175 150 125 *4 100 75 50 + 25 Damand 3 6 12 15 18 21 24 27 30 33 36 QUANTITY (Bikas) PRICE (Dallars par bike)
Transcribed Image Text:3. Elasticity and total revenue The following graph shows the dally demand curve for bikes In Detrolt. 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. 300 275 250 Tatal Revenu 225 200 175 150 125 *4 100 75 50 + 25 Damand 3 6 12 15 18 21 24 27 30 33 36 QUANTITY (Bikas) PRICE (Dallars par bike)
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