To compute total revenue at various prices along the demand curve, we use the following formula:

$\text{Total Revenue (TR)} = \text{Price} \times \text{Quantity}$

Given that you are asked to compute total revenue at prices such as $50, $75, $100, $125, $150, $175, and $200 per bippitybop, and given the quantity associated with each price (based on the demand curve), we can calculate total revenue at each price point. Let's assume the demand curve tells us the corresponding quantities for each price.

To calculate total revenue at each price:

1. Price: $50
   Quantity: 175 (based on the point A you mentioned)
   Total Revenue:
   $50 \times 175 = 8,750$

2. Price: $75
   Quantity: (We need the quantity at $75 from the demand curve; let's say it's 140, for example)
   Total Revenue:
   $75 \times 140 = 10,500$

3. Price: $100
   Quantity: (Similarly, assuming a quantity of 100 at this price)
   Total Revenue:
   $100 \times 100 = 10,000$

4. Price: $125
   Quantity: (Given point B on the graph is $125 and the quantity is 50)
   Total Revenue:
   $125 \times 50 = 6,250$

5. Price: $150
   Quantity: (Assuming a quantity of 30 at this price)
   Total Revenue:
   $150 \times 30 = 4,500$

6. Price: $175
   Quantity: (Using quantity 20 at this price from your demand curve)
   Total Revenue:
   $175 \times 20 = 3,500$

7. Price: $200
   Quantity: (At point B on the second graph, the price is $200 and the quantity is 0)
   Total Revenue:
   $200 \times 0 = 0$

Elasticity Between Points A and B:

You also mentioned the midpoint method for calculating elasticity between points A and B. The formula for elasticity using the midpoint method is:

$E_d = \frac{(Q_2 - Q_1)}{(Q_2 + Q_1)/2} \div \frac{(P_2 - P_1)}{(P_2 + P_1)/2}$

Substituting the values from points A (Price = $50, Quantity = 175) and B (Price = $125, Quantity = 50):

$E_d = \frac{(50 - 175)}{(50 + 175)/2} \div \frac{(125 - 50)}{(125 + 50)/2}$

Solving this will give the approximate elasticity between these two points.

Effects on Total Revenue:

If the price increases from $125 to $150 (a $25-per-bippitybop increase), and assuming the price elasticity of demand is greater than 1 (elastic), total revenue will decrease. This is because with elastic demand, total revenue moves in the opposite direction of price changes.

General Rule for Price and Revenue:

• If demand is elastic: A price decrease will increase total revenue.
• If demand is inelastic: A price decrease will decrease total revenue.

Would you like a detailed solution for the elasticity calculation, or any of the assumptions clarified?

Related Questions:

1. How do changes in elasticity affect total revenue?
2. What happens to total revenue when demand is inelastic?
3. Can you explain the relationship between the midpoint method and elasticity?
4. How do price changes affect different points on the demand curve?
5. What factors could shift the demand curve for bippitybops?

Tip:

Remember that total revenue maximizes when demand transitions from elastic to inelastic. Understanding the elasticity at various points on the demand curve helps predict revenue behavior!