7. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Philadelphia. 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. Total Revenue PRICE (Dollars per bike) A Demand 3 12 15 18 21 24 27 30 33 36 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. 3180 2940 Total Revenue 2700 2460 2220 TOTAL REVENUE (Dollars) 1980 1740 1500 1260 1020 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 $125 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. In general, in order for a price increase to cause an increase in total revenue, demand must be