Attempts |:|:|:| Keep the Highest .l 4 2. 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 an}r changes made to this graph. 130 155 150 Total Revenue 135 g 120 .5 5 ms :1 E 3 an E E 75 g A E 'l'\\ +8 15 I} 4 S 12 iii 20 24 2B 32 35 4G 44 43 QUANTITY (Bikes) On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $30, $45, $60, $75, $90, $105, and $120 per bike. 1730 1620 Total Revenue 1510 1400 1290 TOTAL REVENUE (Dollars) 1180 1070 980 850 740 0 15 30 45 60 75 90 105 120 135 150 165 180 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 $45 per bike, shown as point B on the initial graph. Because the demand between points A and B is a $15-per-bike increase in price will lead to in total revenue per day. In general, in order for a price decrease to cause a decrease in total revenue, demand must be