Question 6 [6] Read the following scenario and answer the succeeding questions. Scenario 3 Johnnie Walker is a brand of Scotch whisky now owned by Diageo that originated in the Scottish burgh of Kilmarnock in East Ayrshire. "Johnnie Walker Blue Label is an unrivalled masterpiece - an exquisite combination of Scotland's rarest and most exceptional whiskies. Only one in every ten thousand casks has the elusive quality, character and flavour to deliver the remarkable signature taste. An extraordinary whisky for extraordinary occasions". Suppose that the price of the Johnnie Walker Blue Label increases from R2400 to R2900 per bottle, and as a result, the quantity demanded decreases from 10000 bottles to 9700 bottles. For scenario 3, answer the following questions: 6.1. Use the ARC (midpoint) formula to calculate and classify the price elasticity of demand for Johnnie Walker Blue Label. (4) . Explain how Diageo can increase total revenue (TR). (2) Question 7 [10] Read the following scenario and answer the succeeding questions. Scenario 4 Suppose the average income of a consumer named Warren decrease from R18000 to R12000. As a result, the quantity of product A demanded by Warren increase from 200 units to 280 units. For scenario 4, answer the following questions: 7.1. Use the ARC (midpoint) formula to calculate the income elasticity of demand for product A given the information above. (3) 7.2 Based on your answer in 7.1, is product A an inferior good or a normal good? Substantiate your answer with reference to your calculated elasticity value. (1) 7.3. With reference to the cross-price elasticity of demand, classify the following values and explain the type of product by providing your own example for each for each. 7.3.1. Ec = -0.5 (3) 7.3.2. Ec = 2.1 (3 )mm Suppose that a consumer consumes only' two products r'uamel'glr Beer and Hamburgers. The price of Beer is RM] and the price of Hamburgers R120. The consumer receives a monthly:r income of R1200. 3.1. Based on the information regarding the price of the two products consumed by and the monthly:r inoome of the consumer, graphically illustrate the consumers budget line. Let Beer be on the Taxis and Hamburgers on the litaxis. Marks will be allocated for the calculated value of the points of intersection. {4} 3.2. Illustrate by aid of a graph how the budget line will If the price of Hamburgers decreases from R120 to R100. (3) Question 10 [6] Perfect competition occurs when none of the individual market participants (buyers & sellers) can influence the price of the product. Under perfect competition marginal revenue (MR) and average revenue (AR) are thus both equal to the market price. 10.1. The situation in which a firm makes an economic profit is identified as one of the possible short-run positions of a firm under perfect competition. 10.1.1. Illustrate the given short-run position and explain the situation with reference to your graph. (6) Question 11 [8] The behaviour of a firm depends on the features of the market in which it operates. With reference to the criteria below, identify a relevant Monopoly in South Africa and explain how the selected firm aligns with the market criteria for a Monopoly. The number of firms in the market The nature of the good or service sold Ease of entry for new competitors into the market Control that the firm has over price