ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $40, $60, $80, $100, $120,
$140, and $160 per bike.
6250
5820
Total Revenue
5300
4960
4530
4100
3670
3240
2810
2380
20
40
60
80
100 120 140 180 180 200 220 240
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 currently $60 per bike, shown as point B on the initial graph. Because the demand between points A and B is
, a $20-per-bike increase in price will lead to
in total revenue per day.
In general, in order for a price decrease to cause a decrease in total revenue, demand must be
TOTAL REVENUE (Dollars)
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Transcribed Image Text:On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $40, $60, $80, $100, $120, $140, and $160 per bike. 6250 5820 Total Revenue 5300 4960 4530 4100 3670 3240 2810 2380 20 40 60 80 100 120 140 180 180 200 220 240 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 currently $60 per bike, shown as point B on the initial graph. Because the demand between points A and B is , a $20-per-bike increase in price will lead to in total revenue per day. In general, in order for a price decrease to cause a decrease in total revenue, demand must be TOTAL REVENUE (Dollars)
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.
(?)
240
220
200
Total Revenue
180 +
180
140
120
100
A
80
B
60
40
20
Demand
+
18
27
36
45
54 63
72
81 90 99 108
QUANTITY (Bikes)
PRICE (Dollars per bike)
expand button
Transcribed Image Text: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. (?) 240 220 200 Total Revenue 180 + 180 140 120 100 A 80 B 60 40 20 Demand + 18 27 36 45 54 63 72 81 90 99 108 QUANTITY (Bikes) PRICE (Dollars per bike)
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