The following graph shows the dally demand curve for blkes in Denver.Use the green rectangle (trlangle 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.120110100Total Revenue908070605040302010Demand16 243240 4856 64 72 80 88QUANTITY (Bikes)On the following graph, use the green point (triangle symbol) to piot the annual total revenue when the market price is $20, $30, $40, $50, $60, $70,and $80 per bike.27702580Tetal Revenue23902200W 20103 1920163014401250106030 40 50 50 70 80 90 100 110 120PRICE (Dollars per bike)10 20According to the midpoint method, the price elasticity of demand between polnts A and B is approximately-Suppose the price of bikes Is currently $20 per blke, shown as point B on the Initlal graph. Because the demand between polnts A and B isva $10-per-bike Increase in price will lead tovIn total revenue per day.In general, In order for a price decrease to cause a decrease in total revenue, demand must beTOTAL REVENUE (DPRICE (Dollars per bike)

Elasticity of demand depicts how much consumer responds with the change in the price level.

The following graph shows the dally demand curve for bikes in Denver. Use the green rectangle (trlangle 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. 120 110 100 Total Revenue 90 80 70 60 50 40 30 20 10 Demand 16 24 32 40 48 56 64 72 80 88 QUANTITY (Bikes) On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price and $80 per bike. 2770 2580 Total Revenue 2390 2200 2010 "ENUE (Dollars) PRICE (Dollars per bike)

The following graph shows the dally demand curve for bikes in Denver. Use the green rectangle (trlangle 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. 120 110 100 Total Revenue 90 80 70 60 50 40 30 20 10 Demand 16 24 32 40 48 56 64 72 80 88 QUANTITY (Bikes) On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price and $80 per bike. 2770 2580 Total Revenue 2390 2200 2010 "ENUE (Dollars) PRICE (Dollars per bike)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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