According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of scooters is currently $15 per scooter, shown as point B on the initial graph. Because the demand between points A and B is a $15-per-scooter increase in price will lead to in total revenue per week. In general, in order for a price increase to cause a decrease in total revenue, demand must be
According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of scooters is currently $15 per scooter, shown as point B on the initial graph. Because the demand between points A and B is a $15-per-scooter increase in price will lead to in total revenue per week. In general, in order for a price increase to cause a decrease in total revenue, demand must be
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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According to the midpoint method, the
Suppose the price of scooters is currently $15 per scooter, shown as point B on the initial graph. Because the demand between points A and B is
a $15-per-scooter increase in price will lead to in total revenue per week.
In general, in order for a price increase to cause a decrease in total revenue, demand must be
Transcribed Image Text:On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $30, $45, $60, $75, $90,
$105, and $120 per scooter.
TOTAL REVENUE (Dollars)
1460
1320
1180
1040
900
760
620
480
340
200
0
15 30 45
60 75 90 105 120 135 150 165 180 195
PRICE (Dollars per scooter)
Total Revenue
?
Transcribed Image Text:PRICE (Dollars per scooter)
195
180
165
150
135
120
105
90
75
60
45
30
15
0
O
+
+
4 8
+
12
A
B
Demand
16 20 24 28 32
QUANTITY (Scooters)
36 40
44
48
52
Total Revenue
?
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