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Elasticity and total revenue The following graph shows the daily demand curve for bikes in Chicago. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand

Elasticity and total revenue The following graph shows the daily demand curve for bikes in Chicago. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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6. Elasticity and total revenue

The following graph shows the daily demand curve for bikes in Chicago.
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.
Use the green rectangle (triangie 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. Z75 250 Total Revenue 225 200 175 150 125 100 75 25 Demand 12 18 24 3 16 42 54 00 0g T2 QUANTITY (Bkes) 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. SSED Total Revenue 540 w 4440 3000 2520 2040 25 100 125 150 15 200 22s no am 300 75 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 ourrently $125 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 an increase in total revenue, demand must be TOTAL REVENUE (Dolilars) (awg jad sueogl 3D1Hd
Transcribed Image Text:Use the green rectangle (triangie 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. Z75 250 Total Revenue 225 200 175 150 125 100 75 25 Demand 12 18 24 3 16 42 54 00 0g T2 QUANTITY (Bkes) 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. SSED Total Revenue 540 w 4440 3000 2520 2040 25 100 125 150 15 200 22s no am 300 75 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 ourrently $125 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 an increase in total revenue, demand must be TOTAL REVENUE (Dolilars) (awg jad sueogl 3D1Hd
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