Cherries farmers have a very bad year, the production of cherries has decreased from 150 million kg to 100 million kg. The price of cherries increased from $8 per kg to $10 per kg. On the other hand, blueberries production increased from 60 million kg to 70 million kg. Questions 1. Calculate the price elasticity of demand for cherries? [2 marks] 2. Are cherries elastic, unit elastic, or inelastic? Explain. What would be the shape of the demand curve of cherries? [2 marks] 3. Would you expect the income (total revenue) for cherries farmers to rise or fall? Explain. [2 marks] 4. Calculate the cross-elasticity between cherries and blueberries. [2 marks] 5. Are cherries and blueberries substitute or complement? Explain. [2 marks]