1)(17pts) Market Demand and Elasticities: Consider the demand for an iPhone 11.Suppose that the demand for a iPhone 11 is Q_d = 5,000 - 2P + 2P_Pixel + 20P_AirPods, where P is the price of the ; P_Pixel is the price of the Google Pixel 4; and P_AirPods is the price for Apple AirPods. Assume that supply is given by Q_s = -100 + 8P - 0.4P_Battery.P is the price of a lithium battery for the iPhone 11.Assume: P_Pixel = $800; P_AirPods = $250; and P_Battery=$200.

a)(3pts)What is the equilibrium price and quantity for an iPhone 11?Graph your supply and demand equations in inverse form (i.e. price on left side of equation and Q on the right) and show the equilibrium P*, Q*.

b)(2pts) At market equilibrium, what are the coefficients for the price elasticity of demand and supply for the iPhone 11?

c)(2pts) What is the coefficient of the cross-price elasticity of demand for the iPhone 11 and AirPods?How would you describe the relationship between the iPhone and AirPods?

d)(2pts) Ceteris paribus, what is the market equilibrium P* and Q* when the price of a Pixel falls from $800 to $600?

e)(2pts) Ceteris paribus, what is the market equilibrium P* and Q* when the price of the iPhone's lithium battery increases from $200 to $300?

f)(2pts) Now suppose the government wants to impose a tax on iPhones because it views Apple's profits as excessive.The government sets the tax equal to $100 per iPhone and places this tax directly on iPhone charging Apple $100 for each iPhone it produces. Calculate the new equilibrium and show the change in your graph labeling P* and Q*. (Fully label)

g)(3pts) How much does the price increase in (f) resulting from the tax of $100 per iPhone?Usethe formula to verifyyour answer.What percentage of the tax falls on consumers in the form of a price increase? Does the burden of the tax change if the tax is placed on the consumer of iPhones instead of the producer? Explain your answer.