2. Remembering the the Gondwanaland chairman of production reported that the gosum berry growers could meet a demand of 700 barrels of gosum berries per month at a price of $70 per barrel. Then the growers were plagued with a gosum berry bug infestation that reduced output, causing production to fall to only 600 barrels. This resulted in a price increase to $84 per barrel. The following table shows the chairman's report: a. Using the midpoint method, show your work and calculate the price elasticity of demand for Gondwanaland gosum berries. Explain what this price elasticity of demand means? b. Complete the table below by calculating what the monthly total revenue is for June, what the monthly total revenue is for July, and the change in total monthly revenue for these two months. How have these numbers changed? (Enter your response here.) c. Using your answer to part a. above, how could you have predicted the change in monthly total revenue that you found in part b. above? 3. The Gondwanaland chairman of production reported that the new Altair chariots (most modern, horse-drawn family chariot) had a PRICE elasticity of 3 and an INCOME elasticity of 2. The supply of these Altair chariots is elastic. Evaluate the following statements and identify whether each statement is true or false and explain how you used the appropriate elasticity to help you determine your answer. a. If there is a 20% increase in the price of the Altair chariot, Gondwanaland can predict the quantity demanded to fall by an astounding 60%. b. An increase in Gondwanaland consumers' incomes will cause prices to rise, but the total quantity demanded will also increase