20 marks question

5.1 Suppose that you are the managing director of a firm that produces three goods: X, Y and Z. The price elasticity of the demand for X is 3,5; for Y it is 1,00; and for Z it is 0,50. The firm is experiencing serious cash flow problems and you have to increase total revenue as soon as possible. You are in a position to set the prices for these goods. What would be your pricing strategy for each product? Explain. [12] 5.2 Use your knowledge of supply and demand curves and elasticity to explain why farmers as a group may prefer bad weather to good weather, even though an individual farmer prefers good weather to bad weather. [08