Knowledge of the concept of elasticity is critical for business and governments as it plays a crucial role in understanding the behaviour of consumers and producers in the market. Write a report that analyses the importance of an understanding of elasticity for business and government decision making. Intended Learning Outcomes: 1. Apply economic frameworks for policy and business decision-making 2. Collate and analyse information through independent research. Your report should include a short executive summary and should contain three distinct parts, using the headings below. Use diagrams to illustrate where appropriate. Part 1 Elasticity explained a. Explain the concepts of price elasticity of demand, income elasticity of demand, and price elasticity of supply. (200-300 words) Part 2 The importance of elasticity for businesses b. Using real world examples, analyse how businesses might utilise knowledge of elasticities in determining their marketing, pricing and production strategies. (500-600 words) Part 3 The importance of an understanding of elasticity for government policy makers c. How might an understanding of elasticities be an important consideration for a government considering imposing a tax on soft drinks to encourage consumers to make healthy choices, and what factors might a policy maker need to consider before implementing such a tax? (500-600 words)