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)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 6.1IP

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