10,000 8,000 Marginal cost Isoprofit curve: P* $63,360 Price, marginal cost ($) Isoprofit curve: $30,000 Isoprofit curve: $0 Demand curve 0 O Q* 50 100 120 Quantity of cars, Q Figure 7.11 The profit-maximizing choice of price and quantity for Beautiful Cars.4. Isoprot and Demand changes Draw diagrams to show how the curves in Figure 7.5a would change in each of the following cases: 1. A rival company producing a similar brand slashes its prices. 2. The cost of producing Apple-Cinnamon Cheerios rises to $3 per pound. 3. General Mills introduces a local advertising campaign costing $10,000 per week. To make sketching the curves easier, assume the demand curve is linear. In each case, can you say what would happen to the price and the prot