Answer Happy

The following graph shows the daily demand curve for bikes in San Diego. 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 Total Revenue PRICE (Dollars per bike) 250 225 200 175 + 150 125 100 75 50 25 0 0 6 10 12 18 *4 + 24 30 36 42 48 QUANTITY (Bikes) B 54 Demand 60 66 72
Homework (Ch 05) 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. ? 6360 5880 Total Revenue 5400 4920 4440 3060 3480 3000 - 2520 2040 TOTAL REVENUE (Dollars) 0 A 25 50 75 100 125 150 175 200 225 250 275 300 PRICE (Dollars per bike);
According to the midpoint method, the price elasticity of demand between points A and B is approximately 0.6 Suppose the price of bikes is currently $125 per bike, shown as point A on the initial graph. Because the demand between points A and B is inelastic , a $25-per-bike decrease in price will lead to an increase in total revenue per day. In general, in order for a price increase to cause an increase in total revenue, demand must be inelastic