Question
On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $30, $45, $60, $75,
On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $30, $45, $60, $75, $90, $105, and $120 per scooter.
Total Revenue01530456075901051201351501651801951460132011801040900760620480340200TOTAL REVENUE (Dollars)PRICE (Dollars per scooter)
According to the midpoint method, the price elasticity of demand between points A and B is approximately .
Suppose the price of scooters is currently $45 per scooter, shown as point B on the initial graph. Because the demand between points A and B is , a $15-per-scooter increase in price will lead to in total revenue per week.
In general, in order for a price increase to cause a decrease in total revenue, demand must be .
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