In January 2022 a radiator hose manufacturer discovered a rival had just started to import a product that is a direct competitor to one of its best-selling hose products. The price of the hose in 2021 was R100 per hose and its marginal cost was R60 per hose. Sales of the hose were 10 000 units in 2021. The market research department of the company has estimated the current elasticity of demand at -2,5. The rival company has priced its imported product at R95 per hose. At this price for the rival's product, the company's marketing manager believes that the price elasticity of its own hose will rise to -3,0 for 2022. The marginal cost of the hose is expected to increase to R65 in 2022. a) What was the company's optimal (profit-maximising) price for this radiator hose in 2021? (2) b) What is the optimal price for the hose in 2022 given the new estimate of price elasticity of demand and marginal cost? (2) c) How can the company increase its profits by reducing the price elasticity of its hose? (2)