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(Solved): The following graph illustrates the weekly demand curve for motorized scooters in Madison. Use the ...
The following graph illustrates the weekly demand curve for motorized scooters in Madison. 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 polnt (triangle symbol) to plot bhe weeby tocal revenue when the murint price is 350, s75, s100, 5125 , siso, 5175, and 5200 per scooter. According to the midpoint method, the price elasticity of demand between points and is approximately Suppose the price of scooters is currently per scooter, shown as point A on the initial graph. Because the demand between points A and 3 is a a25-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
Expert Answer
To calculate total revenue at a certain price, you would need to multiply the price by the quantity demanded at that price. The quantity demanded can be found on the demand curve at the corresponding price point.For example, if the price is $50, and the quantity demanded is 400 scooters per week, then the total revenue at that price point would be:Total Revenue = Price x Quantity Demanded Total Revenue = $50 x 400 Total Revenue = $20,000You can use the same formula to calculate total revenue at various prices along the demand curve by finding the corresponding quantity demanded at each price point and multiplying it by the price.To calculate total revenue at a certain price, you would need to multiply the price by the quantity demanded at that price. The quantity demanded can be found on the demand curve at the corresponding price point.For example, if the price is $50, and the quantity demanded is 400 scooters per week, then the total revenue at that price point would be:Total Revenue = Price x Quantity Demanded Total Revenue = $50 x 400 Total Revenue = $20,000You can use the same formula to calculate total revenue at various prices along the demand curve by finding the corresponding quantity demanded at each price point and multiplying it by the price.