1a) Calibrated Coffee estimates a demand curve for per bag of coffee to be: Log Q = .55 -3.22*Log (P) + .5 Log (I), where Q is quantity of bags of coffee, P is price per bag, and I is a measure on national income. Suppose the marginal cost per bag is $.90. The optimal price would be?

1b) Use Excel Solver, spreadsheet or otherwise to solve the following. A firm's objective is to Maximize Profits. Demand is Q = 1500*P^-1.5, and Total Cost is TC = 30 + 6*Q + .25*Q². The profit maximizing price is?