The market of handbages was in equilibrium. During the year the price of leather, a major component of handbages, increases. A) Explain the shift that will occur during this scenario B) Comment on the final price and quantity in the market Price Quantity Old 40 90 a. Calculate the price elasticity of demand b. Is the product elastic or inelastic c. What should the managers do to increase revenue? New 35 53 110