1.Use the double marginalization problem and solution guides to structure two alternatives: one in which prices to consumers are maintained and profits are split 3:1 in favor of Starbucks, and one in which prices are raised 25% and profits are split 2:1 in favor of Starbucks. Assume the following: current price is $8.00 for a bag of this coffee, manufacturer costs have been $2.00, their mark-up has been $2.00 (and they're seeking more), retailing costs have been $1.00 and mark-up has been $3.00. What are the resulting mark-ups for the manufacturer and retailer (Starbucks) under each scenario? How will suppliers and consumers respond to either scenario?