(Solved): Elasticity and total revenue The following graph shows the dally demand curve for bippitybops in Hou ...

Elasticity and total revenue The following graph shows the dally demand curve for bippitybops in Houston. 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

,

,

, and

per bippitybop. According to the midpoint method, the price elasticity of demand between points

and

on the initial graph is approximatel Suppose the price of bippitybops is currently

per bippitybop, shown as point

on the initial graph. Because the price elasticity of demand between points

and

if , a

-per-bippitybop decrease in price will lead th in total revenue per day. In general, in order for a price increase to cause a decrease in total revenue, demand must be