Hello , please help with this question on ECO202 . Thank you .

Question 1 In an economy, long distance travel is usually provided by highspeed rail and coaches. The fares of highspeed rail are in general higher than the coach fares. Consider a highspeed rail company that offers two classes of seats in its rides, a small number of premium seats at a higher price and a large number of economy seats at a relatively lower price. The company has increased the ticket prices recently for both seats to cover 1e higher operational costs. The prices and quanties sold for both seats before and aer the price hike is shown in the table below. (a) Calculate the price elasticity of demand for both seats using the midpoint method and classify the two seats based on the price elasticity of demand- {It} marks} {b} Refer to the factors that affect the price elasticity of demand and explain with ve (2) reasons why the two classes have the dierent price elasticity of demand. What should the company do to earn more revenue om both seats? Explain. (15 marks) (c) What are the expected signs of the income elasticity of demand for high-speed rail and the cross elasticity of demand between highspeed rail and coaches. HOW does information on these elasticities help the high-speed rail company in business decisions? Explain- (25 marks)