1. A dealer in deep freezers increas product from $450 to $500 and sales units to 600 units a week. Use the information above to answe follow. (a) (i) Calculate the price elasticity c type of elasticity is it? Explain your a (b) Calculate the: (i) total revenue of and after the price increase; (ii) char c) What is the effect of the increase revenue? d) State two factors influencing price 2. The market for apples is represer emand and supply functions: boe Qd = 30-p; Qs = 15 + 2p. a) Prepare a demand and supply sch ven the prices $2.00, $4.00 and $2 ) (i) Determine the equilibrium p uantity of apples in the market. (ii) ced at $3.00, what will be the exces pply. (c) Suppose the demand fur 40-p. Using the prices in (a) prepare a new demand schedule increase or a decrease in dema swer in (c) (ii) above.
