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.
Total Revenue
0
9
18
27
36
45
54
63
72
81
90
99
108
60
55
50
45
40
35
30
25
20
15
10
5
0
PRICE (Dollars per bippitybop)
QUANTITY (Bippitybops)
Demand
A
B
Area: 1260
On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $10, $15, $20, $25, $30, $35, and $40 per bippitybop.
Total Revenue
0
5
10
15
20
25
30
35
40
45
50
55
60
1580
1470
1360
1250
1140
1030
920
810
700
590
TOTAL REVENUE (Dollars)
PRICE (Dollars per bippitybop)
40, 1170
According to the midpoint method, the price elasticity of demand between points A and B on the initial graph is approximately    .
Suppose the price of bippitybops is currently $20 per bippitybop, shown as point A on the initial graph. Because the price elasticity of demand between points A and B is    , a $5-per-bippitybop decrease in price will lead to    in total revenue per day.
In general, in order for a price increase to cause an increase in total revenue, demand must be    .

The task here involves understanding the relationships between price, quantity, and total revenue along a demand curve, as well as how elasticity affects total revenue when prices change. Let's break this down step by step.

### Total Revenue (TR) Calculation
Total revenue is calculated as:
\[
\text{Total Revenue} = \text{Price} \times \text{Quantity}
\]
We need to calculate the total revenue at different prices along the demand curve using points such as $10, $15, $20, etc. per bippitybop.

1. **Total Revenue at Different Prices:**
   - For prices of $10, $15, $20, $25, $30, $35, and $40 per bippitybop, you multiply each price by the corresponding quantity from the demand curve to find total revenue.

### Midpoint Method for Price Elasticity of Demand
The **price elasticity of demand** (PED) measures how responsive the quantity demanded is to a change in price. It's calculated using the midpoint method:
\[
\text{Price Elasticity of Demand} = \frac{\left(\frac{\Delta Q}{(Q_1 + Q_2)/2}\right)}{\left(\frac{\Delta P}{(P_1 + P_2)/2}\right)}
\]
Where:
- $Q_1$ and $Q_2$ are the initial and new quantities.
- $P_1$ and $P_2$ are the initial and new prices.

### Elasticity and Total Revenue
- If demand is **elastic** (PED > 1), a price decrease increases total revenue.
- If demand is **inelastic** (PED < 1), a price increase increases total revenue.
- If demand is **unitary elastic** (PED = 1), total revenue remains constant as price changes.

### Midpoint Method between Points A and B
Without the exact quantities and prices of points A and B, I cannot calculate the precise elasticity. However, you should apply the midpoint method to estimate the elasticity between these two points based on given data.

### Example Interpretation:
- **Price at $20 per bippitybop (Point A):** This point gives a specific quantity demanded and total revenue. The price elasticity between A and B will tell you whether lowering the price (say by $5) will increase or decrease total revenue.
  
If you lower the price by $5 and the price elasticity is elastic (greater than 1), total revenue will increase.

### Final Notes on Elasticity and Revenue:
In general:
- For **elastic demand**, lowering the price increases total revenue.
- For **inelastic demand**, raising the price increases total revenue.

Would you like further clarification on calculating total revenue, price elasticity, or how demand affects revenue?

---

### Expanding Questions:
1. How do you determine if a good is elastic or inelastic based on the demand curve?
2. Can you calculate total revenue when given specific quantity and price data points?
3. How does the midpoint method help in calculating elasticity more accurately?
4. Why does inelastic demand lead to higher total revenue when prices increase?
5. How can total revenue be maximized on a demand curve?

**Tip:** When calculating total revenue, always remember that it reflects both the price and the quantity sold—sometimes increasing price can reduce revenue if the demand is highly elastic.

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. Total Revenue 0 9 18 27 36 45 54 63 72 81 90 99 108 60 55 50 45 40 35 30 25 20 15 10 5 0 PRICE (Dollars per bippitybop) QUANTITY (Bippitybops) Demand A B Area: 1260 On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $10, $15, $20, $25, $30, $35, and $40 per bippitybop. Total Revenue 0 5 10 15 20 25 30 35 40 45 50 55 60 1580 1470 1360 1250 1140 1030 920 810 700 590 TOTAL REVENUE (Dollars) PRICE (Dollars per bippitybop) 40, 1170 According to the midpoint method, the price elasticity of demand between points A and B on the initial graph is approximately . Suppose the price of bippitybops is currently $20 per bippitybop, shown as point A on the initial graph. Because the price elasticity of demand between points A and B is , a $5-per-bippitybop decrease in price will lead to in total revenue per day. In general, in order for a price increase to cause an increase in total revenue, demand must be .

Explore how to compute total revenue at various prices along a demand curve, using the midpoint method to calculate price elasticity. This problem focuses on understanding total revenue changes with price shifts, suitable for students in Grades 10-12.

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