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Case Study Price elasticity is a very important notion in economics, which, however, is not always recognized by students. Let's imagine that certain firm increases the prices for its products. A long time ago, a happy family lived in the big city on the shore of the great sea. They had four children. The oldest was Helen, then Jeralynn, followed by Marisu and finally David. The family owned a bakery on the corner of the two main streets in the city. They had a very good business. All the customers gave them their orders the day before, so when Joseph and his wife Marissa started early in the morning they knew exactly what to bake. It was hard work. They worked seven days a week. Their daughter, who bakes kids cookies and sells them for $2 each. The cookies are sold in a convenience store, which has several options on the counter that customers can choose as a last-minute impulse buy. All of the impulse items range between $1 and $2 in price. In order to raise revenue, Helen decides to raise her price to $2.20. Q2. Distinguish how would we calculate the elasticity, and does it confirm our assumption. (5 marks) Q3. Clarify impact does the elasticity have on total revenue