2. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Miami. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the dema Note: You will not be graded on any changes made to this graph. 240 220 200 Total Revenue 180 160 140 120 PRICE (Dollars per bike) 100 80 60 40 Demand 0 8 12 16 20 24 28 36 40 44 48 A 32 QUANTITY (Bikes)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, $1 $140, and $160 per bike. 2770 A 2580 Total Revenue 2390 2200 2010 TOTAL REVENUE (Dollars) 1820 1630 1440 1250 0 1060 0.47 0 20 40 60 80 100 120 140 160 180 200 220 240 PRICE (Dollars per bike) 2.14 30.01 According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of bikes is currently $160 per bike, shown as point A on the initial graph. Because the demand between points A and B is 7, a $20-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 beelastic inelastic The midpoint method, the price elasticity of demand between points A and B is approximately unit elastic rice of bikes is currently $160 per bike, shown as point A on the initial graph. Because the demand between points A and B is , a $20-per-bike decrease in price will lead to in total revenue per day.a decrease According to the midpoint method, the price elasticity of demand an increase Its A and B is approximately no change Suppose the price of bikes is currently $160 per bike, shown as initial graph. Because the demand between points A and B is , a $20-per-bike decrease in price will lead to in total revenue per day