Question 6 (5+5=10 marks) Please help solve the problems in the following scenarios for the decision maker/managers. a. Suppose a micro-winery sells 800 bottles of wine for $100 per bottle. With a price elasticity of -3 what would be the demand when the price is increased to $110? From your evaluation which price generates more revenue of the company? Answer here: b. Suppose a grocery store at CBD Melboume sells a brand of canned soup at $10 per can (with a margin of 53). For a period of one month, it decreased the price to 59 per can and observed an increase of demand from 1000 to 1300 cans. Please help the store figure out what is the price elasticity for this brand of canned soup. What insights can you draw based on this price elasticity and share with the grocery store manager? Answer here