Answer Happy

6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in New York City. 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. 240 220 200 Total Revenue 150 160 140 PRICE (Dollars per bio) 120 100 30 60 * 1 xo 40 20 0 Demand 16 27 09 100 56 45163 72 81 QUANTITY (Bikes)
On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $40, 560, $80, $100, $120, $140, and $160 per bike. 6250 Toll Revenue 300 1900 TOTAL REVENUE Dors) 4100 in to 2010 40 10 10 10 10 200 220 240 PRICE Dolan perbel According to the midpoint method, the price elasticity of demand between points A and is is approximately Suppose the price of bikes is currently lo per bike, showns point on the graph because the demand between points and $20 perbike decrease in price will lead to in total revenue per day In general in order for a price increase to use an increase in total revenue demand must be