[Total: 8 marks] Scenario: In the town of Filipore, last month, the sellers of bread received RM 1,000 in total revenue on sales of 500 loaves of bread. This month, the sellers of bread took in RM 1,200 in total revenue on sales of 400 loaves of bread. At the same time, although the price of cheese remained constant, the cheese sellers experienced an increase in their sales from 200kg to 400kg. Based on the scenario given, answer the following questions: (a) What is the relationship between bread and cheese? Briefly explain. [1 mark] (b) Show how you calculate the relevant elasticity of demand that corresponds with your answer in part (a) above. [2 marks] Hint: For Part (b), you may use the equation editor function, or type-in your calculations directly here. Alternatively, if you prefer, you may choose to include your calculations (in your own handwriting) in the same file-attachment containing your diagrams. (c) Suppose that, in Filipore, the supply of bread is elastic and the supply of cheese is inelastic. The majority of Filiporeans consider bread and cheese to be normal goods. The government realises that the rising cost of living is putting a strain on households and decides to reduce their income tax significantly. Ceteris paribus, the demand for bread and cheese in Filipore changed by 20%. Based on the information given, answer the following questions: 1. Explain what happened to the market equilibrium price and quantity of bread. Illustrate with an appropriate (and properly-labelled) diagram. [3 marks] 2. In which market (bread or cheese) will the change in equilibrium quantity be the greater? Briefly explain. [1 mark] 3. Will the total spending of Filiporeans on bread rise or fall? Briefly explain. [1 mark] Type your answers in the text-box below. You are allowed to attached ONE document for this question. Remember - the