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 any changes made to this graph.

Total Revenue01020304050607080901001101203002752502252001751501251007550250PRICE (Dollars per bike)QUANTITY (Bikes)DemandAB

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 Revenue025507510012515017520022525027530010600980090008200740066005800500042003400TOTAL 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 B on the initial graph. Because the demand between points A and B is , a $25-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 .