Economics 6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in New York City. 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. (?) 120 Total Revenue PRICE (Dollam per bko) 19 85 18 21 34 37 30 QUANTITY (Bakes) On the following graph, use the green point (triangle symbol) to pict the annual total revenue when the market price is $20, $30, $40, $50, $60, $70, and $80 per bike. (? 1300 1200 Total Revenue 1800 1000 600 TOTAL REVENUE (Dollam) g 80 60 100 110 120 PRICE (Dollars per bike) According to the midpoint method, the price elasticity of demand between points A and 8 is approximately Suppose the price of bikes is currently $30 per bike, shown as point A on the intial graph. Because the demand between points A and $ is . a $10-per-bike decrease in price will lead to in total revenue per day. in general, in order for a price incre an increase in total revenue. demand must be