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Case Study 2 Suppose the demand for cigarettes in South Africa is shown below in Table 1. where Q is the number 01' cigarettes demanded each year. and P is the price in Rand (R) per packet. Table 1: Cigarette demand in South Africa Price (P) Quantity Total Revenue Price elasticity of demand m \"50"" Source: Adapted from Van Walbeek, C.. Krugelt. W. and Samouilhan. N. 2008. South Mdcan Wk forEeonomics. Pretoria: Van Schaili COEC1 11 Take-home Test Paper St 2020] V1.0 Page 3 of 7 2-1 Copy and complete the table provided in the scenario. For the elasticity calculation, use the arc formula- (13 Marks) 2.2 If the current price of cigarettes is set at R15 per packet, what pricing strategy will increase total revenue? Substantiate your answer by using elasticity concepts. (3 Marks) 2-3 At which price level will it be necessary to change your suggested pricing strategy in Question 2.2? Substantiate your answer by using elasticity concepts. (4 Marks)