In 2009, energy firm British Gas was in danger of losing a substantial number of customers. According to a recent poll, some 20 per cent of its customers are preparing to switch to a lower cost supplier after the company announced that it was raising energy prices by 10 per cent. British Gas claimed that the price increases were the result of rising wholesale energy costs. However, this assertion has been challenged by Ann Robinson, chairman of energywatch, who also criticised British Gas for increasing its prices in the winter months when poorer customers struggle to pay their heating bills. 3.1 With reference to elasticity of demand, comment on the above passage. (13 marks) 3.2 Use a supply and demand diagram to comment on the statement by British Gas that rising prices are due to rising wholesale prices. (12 marks)