Question 2 (15 marks) A 25 per cent rig in the price of face masks decreases the quantity of face masks demanded by 15 per cent and decreases the quantity of disposable gloves demanded by 10 per cent. Question 2a) Calculate the Price elasticity of demand (PED) for face masks? Are face masks price elastic or price inelastic? Explain. If the face masks company would like to raise high revenue, should it raise or drop its price? Explain. (6 marks) Question 2b) Calculate the Cross elasticity of demand (CED) for face masks and disposable gloves. Are face masks and disposable gloves complements or substitutes? Explain. (4 marks) [Answer here] Answer 2a) PED of face masks (2 marks) = ls face masks elastic or inelastic [Type the correct answer] (1 mark) Explanation (1 mark): Should the face masks company raise or drop it's price to raise higher revenue? [Type the correct answer] (1 mark) Explanation: (1 mark) MCROO1 Trimester 3 2022 FEX Page 3 of 8 [Answer and show workings here] Answer 2b) CED between face masks and disposable groves (2 marks) = Are face masks and disposable groves substitutes or complements: (1 mark) Explanation: (1 mark)