Managerial economicshelps managers to decide on the planning and control of the benefits.It is synchronized between the planning and control of any institution or firm and itsimportanceincreases. Thus, it plays a huge role in business decisions.

1. The figure below depicts the price elasticity of demand (Add labels to aid your discussion).

If the firm aims to maximize total revenue, analyze and qualify the managerial decisions if demand is elastic,inelastic, and unitary.

Fig. 1. Price elasticity of demand

\fTable A.1 MACROECONOMIC PARAMETERS, 2020-2023 Particulars Actual Adjusted Projections 2020 202 2022 2023 Nominal Gross National Income (GNI) (in Php Million) 19,319,848 low 21,249,018 23,372,423 25,485,077 high 21,435,400 23,968,658 26,388,497 Real GNI Growth (%) -11.4 5.9-6.8 6.8-8.7 5.9-6.8 Nominal Gross Domestic Product (GDP) (in Php Million) 17,938,582 low 19,756,478 21,773,615 23,772,433 high 19,942,860 22,389,849 24,675,853 Real GDP Growth (%) 2 -9.6 6.0-7.0 7.0-9.0 6.0-7.0 Inflation Rate (%), CPI (2012=100) 2.6 Target 2.0-4.0 2.0-4.0 2.0-4.0 Forecast 2.0-4.0 2.0-4.0 2.0-4.0 Population (in Millions) 108.8 110.2 111.6 112.9 Unemployment Rate (%) 10.3 6.7-7.4 5.6-7.1 5.9-7.8 364-Day Treasury Bill Rate (%) 2.4 2.0-3.0 2.0-3.5 2.5-4.0 Foreign Exchange Rate (Php/US$) 49.62 48-53 48-53 48-53 London Interbank Offered Rate (LIBOR), 6-months (%) 0.7 0.2-1.2 0.3-1.3 0.5-1.5 Dubai Crude Oil Price (US$/barrel) 42.21 50-70 50-70 50-70 Exports of Goods Level (in US$ Billion) 47.4 52.2 55.3 58.6 Growth Rate (%) 11.3 10.0 6.0 6.0 Imports of Goods Level (in US$ Billion) 79.3 88.8 97.6 105.4 Growth Rate (%) 22.9 12.0 10.0 8.0 Current Account Balance Level (in US$ Billion) 13.0 10.0 6.7 1.5 n.a. Percent of GDP 3.6 2.5 n.a. Gross International Reserves (Year-End) Level (in US$ Billion) 110.1 115.0 117.0 n.a. Equivalent Months of Imports of Goods, Services and Income 12.6 11.9 11.1 n.a