(Solved): Elasticity and total revenueThe following graph illustrates the weekly demand curve for motorized sc ...

Elasticity and total revenue

The following graph illustrates the weekly demand curve for motorized scooters in Scottsdale.

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 weekly total revenue when the market price is $40, $60, $80, $100, $120, $140, and $160 per scooter.

According to the midpoint method, the price elasticity of demand between points A and B is approximately ____ .

Suppose the price of scooters is currently $60 per scooter, shown as point B on the initial graph. Because the demand between points A and B is ____ , a $20-per-scooter increase in price will lead to____ in total revenue per week.

In general, in order for a price increase to cause a decrease in total revenue, demand must be ____ .