6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Chicago. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. E Total Revenue .3." .o L a: Q E E E D V LIJ 9 D: n. 10 20 so 40 so so 70 so 90 100110120 QUANTITY (Bikes) On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150, $175, and $200 per bike. 10600 A 9800 Total Revenue 9000 8200 7400 TOTAL REVENUE (Dollars) 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.According to the midpoint method, the price elasticity of demand between points A and B is approximately v . 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 Y , a $25-per-bike decrease in price will lead to v in total revenue per day. In general, in order for a price increase to cause a decrease in total revenue, demand must be '7