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).