1.Italian producers have offered discounts of up to 10%, which resulted in an increase in their sales from 7000 kg to 9000 kg in the month of October. Calculate PED, state whether it is elastic or inelastic, and, state what suppliers should do to maximize revenue(2+2+2=6 marks)

a.Calculate PED:

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b.Demand is Elastic, Inelastic, Unit Elastic or perfectlyinelastic?____________________________________________________

c.What should suppliers do to maximize revenue?

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