1.What if the quarterly demand for an automobile is Q = 120,000 - 1.85P, where Q is quantity demanded (sales) and P is price per vehicle.

a.Derive the total revenue equation (TR) of this vehicle as a function of sales (Q) in 2 decimal points. Hint: TR(Q) = P(Q) x Q.

b.With the derived TR(Q) equation above, calculate the unit price of the vehicle that maximizes its total revenue. Clearly show the steps and calculations in 2 decimal points.

c.With the concept of own-price elasticity of demand, what price should be charged to maximize total revenue from sales of the vehicle? Clearly show the steps and manual (hand and calculator) calculations.