Elasticity and total revenue The following graph shows the...

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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. 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.
Points: 1 / 1 Close Explanation
Therefore, the first point on the total revenue curve is (50, 4,500). Using the same method, you can find total revenue at each of the prices listed in the following table: Price Quantity Total Revenue (Dollars per bike) (Bikes) (Dollars) 50 90 4,500 75 81 6,075 100 72 7,200 125 63 7,875
Price Quantity Total Revenue (Dollars per bike) (Bikes) (Dollars) 150 54 8,100 175 45 7,875 200 36 7,200 According to the midpoint method, the price elasticity of demand between points A and B is approximately 0.14 . Points: 1 / 1 Close Explanation

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