On the following graph, use the black point (cross symbol) to indicate the point on the demand curve at $120. (Note: Dashed drop lines willautomatically extend to both axes.) Then answer the question that follows.PRICE (Dollars per copy)200180160140120100806040200The market for new economics textbooks (Print only)0 20 40 60 80 100 120 140 160 180 200QUANTITY OF ECONOMICS TEXTBOOKS (Thousands of copies)In 2018, at $120,Demand-0In 2019, at $120,Demand+Revenue in 2019@copies of the textbook are demanded, and the publisher's revenue is sSuppose that in the early part of a new book's life, sales drop by 15% to 20% each term, as the pool of used books on the market.grows. This is because after being on the market, the latest edition of a given textbook will have made its way into the used textbookmarket, giving many students the opportunity to move from new textbooks toward used ones. As the supply of used textbooksIncreases, the price of used textbooks decreases, and thus the expected resale value for new textbooks declines. Suppose the publisherstill plans to charge the same price of $120 per new copy of the textbook between editions.Adjust the previous graph to show the effect of the market for used textbooks on the demand for new economics textbooks in 2019. (Note: Selectand drag the curve to the desired position. The curve will snap into position, so if you try to move a curve and it snaps back to its original position,just drag it a little farther.) Next, use the purple rectangle (diamond symbols) to shade the area representing the revenue the publisher should expectin 2019. (Note: Select and drag the shaded region from the palette to the graph. To resize the shaded region, select one of the points and move tothe desired position. To see the area of the rectangle, select the shaded region.) Then answer the question that follows.copies of textbook will be demanded, and the publisher's expected revenue is sSuppose now that the publisher realizes the damaging effect of the market for used textbooks on its revenue. Market research suggeststhat on average, between editions, the price of an economics textbook declines by approximately 50%. To offset the potential damageto revenue, the publisher decides to sell both the printed textbook at $120 and an electronic version of the textbook at a competitiveprice of $30, which is 75% less than the price of a new textbook. By design, e-books offer the same content along with a number ofadvanced features such as highlighting the text, searching, and bookmarking. To obtain an e-book, students must purchase apersonalized access code that absolutely cannot be resold or transferred.The following graph shows the demand curve for new economics textbooks, which is more elastic than when the new textbook was available only inprint form (as shown on the previous graph). This is because now the new printed book has a substitute-a new e-book. Use the purple rectangle (diamond symbols) to shade the area representing the revenue the publisher should expect from selling printed textbooks in2019. Next, use the green rectangle (triangle symbols) to shade the area representing the revenue the publisher should expect by offering the e-books in 2019. Then answer the question that follows.PRICE OF E-BOOK (Dollars per copy)18016014012010040200The market for new economics textbooks (Print and e-book)20060100 120 140 160 180QUANTITY OF ECONOMICS TEXTBOOKS (Thousands of copies)4080DemandBy offering e-books at $30, the publisher will sellPrint RevenueE-book Revenue(?)copies of e-books and generate $copies of new printed textbooks will be sold, which will generate $in revenue.in revenue. At the same time,

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The demand is very elastic if the percentage change in quantity demanded is higher than the…