Question: Please help me with this! a) Everything else held constant, what will happen to the equilibrium price and quantity of pens if the following events

Please help me with this!

Please help me with this! a) Everything else held constant, what will

a) Everything else held constant, what will happen to the equilibrium price and quantity of pens if the following events occur simultaneously - price of pencils rises and the union of pen-makers negotiate for a higher wage? Provide brief explanation. (2.5 marks) b) Everything else held constant, a 4 percent increase in the price of a pen causes a 3 percent decrease in quantity demanded for the same. Calculate the price elasticity of demand for a pen. (1 mark) c) In this case, explain briefly whether the revenue will increase or decrease? (1.5 marks)

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