Year1 Econ

urgent, thanks, please

in1 Cooking oil is an essential item for meal preparation everyday of all citizens on the Kangaroo Island. Boost Ltd. is one of the supermarkets selling all brands and types of cooking oil on the island. It is currently selling $48 for a bottle of cooking oil. Mr. Lam, the husband of the owner of Boost Ltd., tells his wife "You should increase the selling price of cooking oil.\" Mrs. Lam is interested in understanding could an increase in price of cooking oil increase her total revenue. The demand schedule of cooking oil of Boost Ltd. is shown in the table below. (a) (b) (C) (d) Price 5 Quantity demanded [Number of bottle) 28 1200 38 1100 48 1000 58 900 68 800 78 600 Identify one normative statement and one positive statement from the given information above respectively. No explanation is needed. (2 marks) Use the midpoint method to calculate the price elasticity of demand ifthe price of a bottle of cooking oil increases from $48 to 568. Show your workings and round your answer to 2 decimal places. Is this an elastic, inelastic or unit elastic demand? Why? (5 marks) Identify and explain the factors that could justify the price elasticity of demand of cooking oil that you identied in your answer of part (b). (3 marks) Base on your answer of part (b), would you suggest Mrs. Lam to increase her total revenue by increasing the price of cooking oil from $48 to $68? Illustrate your explanation with a well- labelled diagram and relevant data. (10 marks) (Total: 20 marks)