4. DBS Farms is a producer and retailer of farm products. DBS main products are Mangoes,

Pawpaw and Pineapples. The current price of the Mangoes per kilogram is GHS 50, the Pawpaw/Kg is GHS 80 and the Pineapple is GHS 40. This year the DBS Farms sold 10,000 kgs of Mangoes, 20,000 kgs of Pawpaw and 1 million kgs of Pineapples. In an attempt to improve revenue, the managers of the firm have decided to increase all prices by 10%. Market research has suggested that the price elasticity of demand for each product is: Mangoes: - 1.5; Pawpaw: -2.5; Pineapples: -0.6. You have been asked to evaluate the planned price increases.

a. Comment on the planned price changes. b. Would a 10% price reduction have been better for some or all of the products?