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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...
Question:
Hi, I was having a hard time with this problem. Please help. This problem has 4 parts to it.
1 - The graph (I attached the graph with my answers but do not know if it is correct)
2-According to the midpoint method, the price elasticity of demand between points A and B on the initial graph is approximately
A. 0.1 B. 0.69 C. 1.44 D. 27
3-Suppose the price of bippitybops is currently $20 per bippitybop, shown as point B on the initial graph. Because the price elasticity of demand between points A and B is (elastic, inelastic, or unit elastic), a $5-per-bippitybop increase in price will lead to (a decrease, an increase, or no change).
4- In general, in order for a price decrease to cause a decrease in total revenue, demand must be (elastic, inelastic, or unit elastic).
Thank you!
- Attachment 1
- Attachment 2
- Attachment 3
- Attachment 4
- Attachment 5
