We R' Write has made some changes over the last year, hoping to increase total revenues generated. Specifically, We R' Write increased the price of their pencils and decreased the price of their pens. However, We R' Write has seen total revenues actually go down. Given the information in the table below, complete the following: . Calculate the price elasticity of demand for pencils and pens. - Interpret the price elasticity of demand for pencils and pens. . Indicate if the demand for pencils is price elastic, inelastic, or unit. - Indicate if the demand for pens is price elastic, inelastic, or unit. . Tell We R' Write if the decision to decrease he price of pencils was correct or not, and why, - Tell We R' Write if the decision to increase the price of pens was correct or not, and why. Price Quantity Demanded Item Last This Last This Year Year Month Month Pencils $030 $025 25,000 62,000 Pens $3.00 $3.50 77,000 30,000 We R' Write currently purchases the wood used to make their pencils, the rubber used to make erasers for their pencils, and the lead for the pencils from other firms. However, We R' Write is considering purchasing these firms so they can personally produce all the components used for making pencils. . As an economist, what would you call the current way We R' Write is acquiring the products needed to make their pencils (purchasing from other rms)? - What benets and problems could We R' Write have with the current way of doing business? . As an economist, what would you call We R' Write's proposal to purchase the firms that make the pencil components? . What benets and problems could We R' Write have concerning the purchase of these other rms? Two workers are currently trying to produce both pens and pencils for a company named We R' Write' WorkerA can produce 100 pencils per day or 50 pens. Worker B can produce 100 pencils per day or 20 pens' - If the workers continue to tw and produce both, how many pencils will each worker produce, and how many pens will each worker produce? . What is the opportunity cost of producing pencils and for producing pens for each worker? - After specialization, how many pencils will be made in total by both workers? - After specialization, how many pens will be made in total by both workers? - What is the difference in the total number of pencils made by both workers after specialization? - What is the difference in the total number of pens made by both workers after specialization