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. 3180 2940 Tal Revn 2700 2460 2220 1980 1740 1500 A 1260+ O 5 so 75 100 125 150 175 200 225 250 275 300 PRICE (Dallars per bika) According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of bikes is currently $125 per bike, shown as point A on the Inital graph. Because the demand between points A and B is a $25-per-bike decrease in price will lead to v 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 (Dalars)

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. 3180 2940 Tal Revn 2700 2460 2220 1980 1740 1500 A 1260+ O 5 so 75 100 125 150 175 200 225 250 275 300 PRICE (Dallars per bika) According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of bikes is currently $125 per bike, shown as point A on the Inital graph. Because the demand between points A and B is a $25-per-bike decrease in price will lead to v 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 (Dalars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Graph and solve attachments:

On the following graph, use the green polnt (triangle symbol) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150,
$175, and $200 per bike.
3180
2940
Tatal Revane
2700
2460
2220
1980
1740
1500
A
1260
1020
++
25 50
75 100 125 150 175 200 225 250 275 300
PRICE (Dallars par bika)
According to the midpolnt method, the price elasticity of demand between polnts A and B Is approximately
Suppose the price of bikes is currently $125 per bike, shown as polnt A on the Initial graph. Because the demand between polnts 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 (Dallars)

3. Elasticity and total revenue
The following graph shows the dally demand curve for bikes In Detrolt.
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.
300
275
250
Tatal Revenu
225
200
175
150
125
*4
100
75
50 +
25
Damand
3
6
12
15 18
21
24
27
30 33
36
QUANTITY (Bikas)
PRICE (Dallars par bike)

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