1.Assume Coal Ben is selling Hamburger plates that have an average cost of $3 at an initial price of $6 so that its sales are 25 hundred.Now suppose that using new equipment that pre-forms the burgersCoal Bens average costs per burger are reduced to $1, per data in the table below.

a.Graphically depict therangeof where the old and new equilibrium price and quantity demanded and supplied for this market will lie using the "Demand and Cost Model" (DCM) and explain your answer.(Note: In the DCM model the profit maximizing price equals the average of the intercept of the demand curve, in this case $11, and average cost.)

b.What are the major differences between the SDM and the DCM?

c.If Coal Ben was initially selling hamburgers at a price of $7, how much profit would it be making per day on hamburgers?

d.If Coal Ben (a benevolent business!) wanted to "pass through" this entire cost reduction to benefit students and maintain the same daily hamburger profit after the decrease in cost, what price would it set?