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 bippitybop.

Given graph:

According to the midpoint method, the price elasticity of demand between points A and B is approximately (0,0.6,1.67,27).

Suppose the price of bippitybops is currently $100 per bippitybop, shown as point A on the initial graph. Because the price elasticity of demand between points A and B is (elastic, inelastic, unit elastic) , a $20-per-bippitybop decrease in price will lead to (increase, decrease, no change)in total revenue per day.

In general, in order for a price increase to cause an increase in total revenue, demand must be (elastic, inelastic, unit elastic).

Transcribed Image Text:

PRICE (Dollars per bippitybop) 240 220 200 180 160 140 120 100 80 60 40 20 0 H 0 + 6 *1 00 B + 12 18 24 30 36 42 48 54 QUANTITY (Bippitybops) Demand 60 66 72 Total Revenue REVENUE (Dollars) 5060 4680 4300 3920 3540 3160 2780 2400 2020 1640+ 0 + + 20 40 60 80 100 120 140 160 180 200 220 240 PRICE (Dollars per bippitybop) Total Revenue PRICE (Dollars per bippitybop) 240 220 200 180 160 140 120 100 80 60 40 20 0 H 0 + 6 *1 00 B + 12 18 24 30 36 42 48 54 QUANTITY (Bippitybops) Demand 60 66 72 Total Revenue REVENUE (Dollars) 5060 4680 4300 3920 3540 3160 2780 2400 2020 1640+ 0 + + 20 40 60 80 100 120 140 160 180 200 220 240 PRICE (Dollars per bippitybop) Total Revenue

Answer rating: 100% (QA)

Total revenue is found by multiplying price with the quantity The points ar... View the full answer