The following graph shows the daily demand curve for bippitybops in Detroit.

Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.

You will not be graded on any changes made to this graph.

On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $30, $45, $60, $75, $90, $105, and $120 per bippitybop.

According to the midpoint method, the price elasticity of demand between points A and B is approximately (0,0.54,1.86,14).

Suppose the price of bippitybops is currently $45 per bippitybop, shown as point B on the initial graph. Because the price elasticity of demand between points A and B is ( elastic, inelastic, unit elastic) , a $15-per-bippitybop increase in price will lead to (a decrease, an increase, no change) in total revenue per day.

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

Transcribed Image Text:

180 165 150 Total Revenue 135 120 105 90 75 60 メイ 45 30 15 Demand 8. 12 16 20 24 28 32 36 40 44 48 QUANTITY (Bippitybops) PRICE (Dollars per bippitybop) す 180 165 150 Total Revenue 135 120 105 90 75 60 メイ 45 30 15 Demand 8. 12 16 20 24 28 32 36 40 44 48 QUANTITY (Bippitybops) PRICE (Dollars per bippitybop) す

Answer rating: 100% (QA)

The total revenue is shown in the following graph Quantity 1... View the full answer