(Solved): 8. Elasticity and total revenue The following graph shows the dally demand curve for bikes in Denve ...

8. Elasticity and total revenue The following graph shows the dally demand curve for bikes in Denver. 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. 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. According to the midpoint method, the price elesticity of demand between points \( \mathrm{A} \) and \( \mathrm{B} \) is approximately Suppose the price of bikes is currentiy \( \$ 200 \) 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 doy. In general, in order for a price increase to cause a decrease in total revenue, demand must be