Use given data in picture

Q: 1) Help Angela understand the concept by:

a. Explaining the concept of cross-price elasticity. Provide a specific

interpretation of the numeric and product examples given above.

b. Cross price elasticity allows us to classify the relation between products into

two categories. Classify the above stated products into these categories and

give one more example for each category in relation to BabbleBot.io's chat

bot solution. Explain your choice. (You can use a product category or specific

product to answer the question, but the product category needs to differ from.

Q2) Explain the concept of economic welfare by:

a. Explaining the concepts of consumer surplus, producer surplus, and total

welfare. Visualize the concepts in a market model for the chat bot market

under perfect competition.

b. Explain how the 4 conditions for perfect competition could be violated for the

market for chat bot solutions.

Being a Tech Entrggreueur After completing her studies, Angela was at cross-roads in her career. {In the one hand, she had great job offers from large established rms, offering a lot of security and a good salary. [in the other hand, Angela knew that she preferred working for her own cause instead of being one of many employees. She felt limited by the corporate culture and the typical 9 to 5 attitude that was predominantly implemented in the companies that wanted to hire her. Instead of choosing the secure option, Angela decided to start her own rm. Together with two fellow students from her studies, she founded a company that provides a chat bot solution for business customers called Babbfsouo. Angela has been leading the rm as co-founder for the last 3 years during which the rm has been performing well. The chat bot solution provided by Babhfeotjo is implemented on clients' websites and allows these clients to automatically answer consumers" questions at any time of the day. The technological foundation of the chat hot is a combination of a library of standardized answers to a large set of common questions, as well as articial intelligence and machine learning algorithms that help the system to correctly interpret consumers' questions and become smarter over time. If the chat bot is not able to answer a question of a consumer using information from the library, the inquiry is either directly forwarded to a sales representative {during ofce hours} or the chat bot offers the consumer the opportunity to leave contact details, for example e-l'vlail address or phone number, to be contacted later. Lately, the Babbleotjo team has been working on a performance update to the chat bot. The team wants to add a cloud processing layer that processes the sub mitted questions of consuan more efciently. For this purpose, the team needs to allocate random accms memory {RAM} to two sub-processes: {1} processing speed of single messages, and {2] parallel processing of several requests at the same time. Babbleotio has already purchased a new server rack for 30,000 DKK and S IZGE RAM in units oleZG-E for 1,000 DKK per piece and 32,001] DKK in total