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Suppose the Cabbage rises from $0.20 per Kilogram to $0.30 per Kilogram. The quantity demanded of cabbage falls from 800 Kilogram per week to 600 Kilogram per week. Calculate the price elasticity of demand for cabbage using the midpoint formula. Is the demand clastic, inelastic, or unit elastic? What would be the effect on total revenue of the Cabbage seller of such an increase in the Cabbage price? [5 Marks] b) John spends his income of $150 per week on two goods: pizzas (which cost $5 each) and books (which cost $10 each). At her current level of consumption, the marginal utility from the last pizza consumed is 20 and the marginal utility from the last book consumed is 30. Is John maximizing his utility? Why or why not? If not, what should John do to achieve a higher level of utility? [5 Marks] Problem Three [10 Marks]: Below is a production possibilities table for Personal Protective Equipment (PPE) and Hand Sanitizer: Production Alternatives Type of A C D E Production PPE 0 2 6 Hand 30 27 21 12 Sanitizer a. Show these data graphically. If the economy is at point C, what is the cost of one more PPE? Of one more Hand sanitizer? Which characteristic of the production possibilities curve reflects the law of increasing opportunity costs: its shape or its length? [3 Marks] b. If the economy characterized by this production possibilities table and curve is producing 3 PPE and 20 Hand sanitizer, what could you conclude about its use of its available resources? [2 Marks]