1. Business
  2. Economics
  3. the following graph shows the daily demand curve for bikes...

Question: the following graph shows the daily demand curve for bikes...

Question details

The following graph shows the daily demand curve for bikes in Denver. Use the green rectangle (triangle symbols) to compute total revenue at varlous prices along the demand curve. Note: You will not be graded on any changes made to this graph 300 275 250 Totel Reveue 200 175 150 125 100 75 A-Z 25 10 20 30 40 50 60 70 80 90 1000 120 QUANTITY (Bikes)On the following graph, use the green point (triangle symboi) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150, s $50, $75, $10 $175, and $200 per bike. 2 10600 9800 Total Revenue 9000 8200 4C0 6600 5800 5000 4200 3400 0 25 50 75 100 125 150 175 200 225 250 275 300 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 $200 per bike, shown as point A on the initial graph. Because the demand between points A and B is , a $25-per-bike decrease in price will lead to in total revenue per day. In general, in order for a price increase to cause a decrease in total revenue, demand must beHomework (Ch 05) 10600 9800 Total Revenue 9000 5000 5000 3400 25 50 75 100 125 150 175 200 225 250 275 300 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 $200 per bike, shown as point A on the initial graph. Because the demand between points A and B is A-Z , a $25-per-bike decrease in price will lead to in total revenue per day. In general, in order for a price increase to cause a decease in total revenue, demand must be Grade It Now Save & Continue Continue without saving

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution