ArkS QUESTIONS A company sells made-in-Ghana shoes to its teeming customers at the Central Business Unit (CBU) of Accra. The daily demand for the company's shoes (X) is estimated as: Ord =200 - 4Px + 5Py - 0.05M Where Px is the unit price of shoes, Py is the unit price of imported shoes (1) and M is the average monthly income of its customers. Suppose the company's shoe is sold at GH$25.00 a pair, imported shoe sells at GHe 15.00 and consumers' average income is GH@500.00. i. Determine the company's daily demand for shoes. 3 marks ii. If the company wants to increase its current demand of shoes by 20 pairs, a day, by how much should the enterprise reduce its price? 5 marks iii. Estimate and interpret the cross price and income elasticities of demand. 6 marks iv. What pricing strategy will you recommend to the company in order to maximize its daily sales of shoes? Explain your answer. 6 marks