A producer of good A and good B adjusted the farm prices for the two goods. The producer then creates the following demand schedule to see how the pricing adjustments have affected the revenue. PRICE (Good A) PRICE (Good B) Quantity demanded (Good A) Quantity demanded (Good B) 800 2000 55 15 1500 1500 40 20 1700 1200 35 35 1800 1000 20 40 2000 700 15 55 2500 500 5 60 2.1. a) Calculate the price elasticity of demand for good A as the price increases from R800 to R1500, is demand elastic, inelastic or unitary? (5) b) What is the total revenue? show graphically the loss and gain. (6) c) By looking at the revenue, would you advise the farmer to increase or decrease the price of Good A? (2) 2.2. a) Calculate the price elasticity of demand for good B as the price decreases from R1000 to R700 is, demand elastic, inelastic or unitary? (5) b) What is the total revenue? show graphically the loss and gain. (6) c) By looking at the revenue, would you advise the farmer to decrease or increase the price of Good B? (2) 2.3. a) Calculate the cross elasticity of demand between Good A and Good B when the price of Good A increases from R1500 to R1700. (4) b) Are the two goods substitutes, complements or unrelated. State your reasons. (3) c) How will the price increase of Good A affect the demand of Good B?