According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of bikes is currently $200 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 a decrease in total revenue, demand must be

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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.
10600
9800
Total Revenue
9000
8200
7400
6600
5800
5000
4200
3400
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
Suppose the price of bikes is currently $200 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 a decrease in total revenue, demand must be
TOTAL REVENUE (Dollars)
Transcribed Image Text: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. 10600 9800 Total Revenue 9000 8200 7400 6600 5800 5000 4200 3400 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 Suppose the price of bikes is currently $200 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 a decrease in total revenue, demand must be TOTAL REVENUE (Dollars)
(?
300
275
250
Total Revenue
225
200
175
150
125
100
75
50
25
Demand
10
20
40
50
60
70
80
06
100 110
120
QUANTITY (Bikes)
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.
PRICE (Dollars per bike)
Transcribed Image Text:(? 300 275 250 Total Revenue 225 200 175 150 125 100 75 50 25 Demand 10 20 40 50 60 70 80 06 100 110 120 QUANTITY (Bikes) 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. PRICE (Dollars per bike)
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