Suppose that over the past year increases in the price of milk has increased the retail price of ice cream by 4%. In the same period, ice cream consumption has fallen by 3%.

a)What type of price elasticity of demand is this? Explain how you worked out your answer.

b)Suggest reasons why the price elasticity of demand for ice cream would be of the type you specified above.

c)Will the revenue received by ice-cream sellers have increased or decreased as a result of the price increase? Explain your answer.

Also draw diagrams