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.

Total Revenue02550751001251501752002252502753006360588054004920444039603480300025202040TOTAL REVENUE (Dollars)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 .