R T R MR Homework (Ch 05) o X 5. The variation in elasticity and total revenue along a demand curve The following graph shows the daily demand curve for bippitybops 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. g B o @ > 200 - o0 1 * | + A Total Revenue 100 o PRICE (Dollars per bippitybop) 0 Demand 0 4 2 @ W 8 W 10 QUANTITY (Bippitybops per day) Caleulate the daily total revenue when the market price is $200, $180, $160, $140, $120, $100, $80, and $60 per bippitybop. Then, use the green oint (trianale symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph. 2] g B o @ > g e RO G Hemework (Ch 05) % MindTap - Cengage Leaming MR CENGAGE ' MINDTAP Homework (Ch 05) Calculate the daily total revenue when the market price is $200, $180, $160, $140, $120, $100, $80, and $60 per bippitybop. Then, use the green point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph. o 1 5500 e oo | Total Revenue w0 | s000 2500 1 3000 2500 1 2000 1 S o 2 2 & = 3 & = E 5 e W 0 = @ W oW W 0 QUANTITY (Bippitybops per day) According to the midpoints formula, the price elasticity of demand between points A and B on the initial graph is approximately Suppose the price of bippitybops is currently $160 per bippitybop, shown as point A on the initial graph. Because the price elasticity of demand between points A and B is W, a $20-per-bippitybop decrease in price lead to 'w_in total revenue per day. In general, in order for a price increase to cause a decrease in total revenue, demand must be - Grade It Now Save & Continue Continue without saving o X