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
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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.
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 piot the annual total revenue when the market price is $20, $30, $40, $50, $60, $70,
and $80 per bike.
2770
2580
Tetal Revenue
2390
2200
W 2010
3 1920
1630
1440
1250
1060
30 40 50 50 70 80 90 100 110 120
PRICE (Dollars per bike)
10 20
According 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 is
v
a $10-per-bike Increase in price will lead to
v
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 (D
PRICE (Dollars per bike)
Transcribed Image Text: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. 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 piot the annual total revenue when the market price is $20, $30, $40, $50, $60, $70, and $80 per bike. 2770 2580 Tetal Revenue 2390 2200 W 2010 3 1920 1630 1440 1250 1060 30 40 50 50 70 80 90 100 110 120 PRICE (Dollars per bike) 10 20 According 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 is v a $10-per-bike Increase in price will lead to v 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 (D PRICE (Dollars per bike)
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