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. REVENUE (Dollars) 1130 1020 910 800 690 580 Total Revenue
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. REVENUE (Dollars) 1130 1020 910 800 690 580 Total Revenue
Chapter1A: Appendix: Working With Graphs
Section: Chapter Questions
Problem 1E
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Transcribed Image Text: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 REVENUE (Dollars)
1130
1020
910
800
690
580
470
360
250
140
0 15 30 45
60 75 90 105 120 135 150 165 180 195
PRICE (Dollars per scooter)
Total Revenue
?
According to the midpoint method, the price elasticity of demand between points A and B is approximately
Suppose the price of scooters is currently $90 per scooter, shown as point A on the initial graph. Because the demand between points A and B is
a $15-per-scooter decrease in price will lead to
in total revenue per week.
In general, in order for a price decrease to cause a decrease in total revenue, demand must be
Transcribed Image Text:The following graph illustrates the weekly demand curve for motorized scooters in Moline.
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.
PRICE (Dollars per scooter)
195
180
165
150
135
120
105
90
75
60
45
30
15
0
+
+
0 3 6 9
A
B
Demand
++
12 15
18 21 24 27 30
QUANTITY (Scooters)
33 36
39
22
Total Revenue
?
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