6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in San Diego. 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. 300 - 275 250 Total Revenue 225 200 175 150 125 + 100 + 75 PRICE (Dollars per bike) 50 25 Demand . 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. _\\ C?!) 6360 A 5800 nalRevenue 5400 4920 4440 3960 3480 TOTAL REVENUE (Dollars) 3000 2520 A 2040 I | l l l l l l l l | 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 V Suppose the price of bikes is currently $125 per bike, shown as point A on the initial graph. Because the demand between points A and B is V , 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 an increase in total revenue, demand must be V