Assume that the demand curve for Pepsi passes through the following two points:

Price per bottle of Pepsi _________________ Number of bottles

(In dollars) ____________________________ Demanded

$2.50 ................................................... 100,000

1.25 ..................................................... 200,000

a. Draw a graph with a linear demand curve that passes through these two points.

b. Show on the graph the areas representing total revenue at each price. Give the value for total revenue at each price?