a) Venture Manufacturing is an electronics manufacturer. Its main products are ultrabook computers, PCs, and calculators.The current price of the ultrabook computer is $2,000, the PC is $3,000 and the calculator is $40. This year the firm sold 10,000 ultrabook computers, 20,000 PCs, and 1 million calculators.

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:

Product Price elasticity of demand(PED)

Ultrabook computer (-) 1.5

PC (-) 2.5

Calculator (-) 0.6

i) Interpret the coefficients of PED for each product. (15 marks)

ii) Determine the percentage change in the quantity for ultrabook computer,PC, and calculator.(15 marks)

iii) Explain the impact of a 10% price increase for all the products on the firm's revenue. (15 marks)

iv) Explain the impact of a 20% price fall for all the products on the firm's revenue. (15 marks)

v) What advice can you provide to the firm on its product pricing strategy? (10 marks)