2. You have been asked to explain the concept of elasticity to the manager of the ODEON cinema. When doing this be sure that you also explain which product out of Cigarettes or Cinema tickets you would expect to be more price elastic and give further examples to make sure the concept is clear. Extend your explanation to cover why knowledge of such economic concepts will enhance the manager's understanding of the market for cinema tickets and thus the business operations of the ODEON. Costa, the chain of coffee shops, has asked you for advice on the products they import to sell at their shops. Suppose, you find the Price Elasticity of Supply of coffee beans is 2.5. How much more should Costa offer to the producers of coffee beans to increase the production by 20 percent? What does this say about the suppliers of coffee beans and the position of Costa? Imagine that you are an adviser to the manager of Sainsbury's, the major supermarket in Bath. The manager is interested in planning for the possible effects of Brexit, which has been forecast to lead to a reduction in the real income of consumers. Assuming this prediction is correct, explain what will happen to the products that Sainsbury sells that have an Income Elasticity that is: a.) Greater than 1 b.) Less than 1 but greater than 0? c.) Less than 0

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