Question in picture attached.

1. You are a health manager in charge of your system's committee that sets target prices for its services, and are currently assessing the pricing for Service X. According to market research, the price elasticity of Service X purchased from you is -2.9. A. If you decide to increase the price of Service X by 8%, how will that affect the quantity of services produced, and the monthly revenue generated by those services? Refer to the table below: Price Quantity Sold Monthly Revenue Initial price of X $315.00 417 $131,355 New (increased) price of X % increase or 8% or -8% decrease B. One of your system analysts suggests that it might in fact be more profitable to cut (not raise) prices by 8%. Test the validity of this by putting -8% into the above relationship and calculating the result, then comparing it to the analysis with an 8% price increase. c. Given the results of these two analyses, what advice would you give to the committee with respect to the price of Service X, and why? Provide a 1-2 paragraph explanation for your advice