following graph illustrates the weekly demand curve for motorized scooters in Wilmington. the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. te: You will not be graded on any changes made to this graph. PRICE (Dollars per scooter) 8888888888 110 100 Total Revenue 4
following graph illustrates the weekly demand curve for motorized scooters in Wilmington. the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. te: You will not be graded on any changes made to this graph. PRICE (Dollars per scooter) 8888888888 110 100 Total Revenue 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please help and explain!
Transcribed Image Text:6. Elasticity and total revenue
The following graph illustrates the weekly demand curve for motorized scooters in Wilmington.
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.
PRICE (Dollars per scooter)
33 8 8 8 8 8 8 8 8 888
110
20
B
Demand
0 16 24 22 40 48 50 04 72 80 80 104
QUANTITY (Scooters)
Total Revenue
?
4
On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $20, $30, $40, $50, $60, $70,
and $80 per scooter.
Transcribed Image Text:2200
2120
TOTAL REVENUE (Dollars)
1900
1040 +
1700
1500
1420
1200
1140
1000
A
4
K
0 10/20 50 40 50 60 70 80 90 100 110 120 100
PRICE (Dollars per scooter)
Total Revenue
?
According to the midpoint method, the price elasticity of demand between points A and B is approximately
Suppose the price of scooters is currently $20 per scooter, shown as point 8 on the initial graph. Because the demand between points A and B is.
a $10-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
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