2) A rm sells its product to two groups of customers. Demand from group 1 is Q1 = 100,000 5, OOOP and demand from group 2 is Q2 2 140, 000 10, OOOP. a) Find the total demand that the rm faces for its product. Explain it rst using pictures (you don't have to draw them to scale; I just want you to see how to proceed) and then do the algebra. Write your answer of the total demand as quantity as a function of price. (Hint: draw pictures following the example on p.35 of the slides on demand. Then carefully add the two demands horizontally; that is, at each price add the quantities demanded in both locations at that price) b) Express now your answer as price as a function of quantity. 6. Suppose demand and supply are given by Q" = 60 - P and Q's = P - 20. (LO3, LO4) a. What are the equilibrium quantity and price in this market? b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market. c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $32 is imposed in this market. Also, determine the full economic price paid by consumers.1. Answer the following questions based on the accompanying diagram. (LO], LO2, LO4) Price ($) 20 18 16 14 ONAADONI D Quantity 2 3 4 5 6 a. How much would the firm's revenue change if it lowered the price from $12 to $10? Is demand elastic or inelastic in this range? b. How much would the firm's revenue change if it lowered the price from $4 to $2? Is demand elastic or inelastic in this range? c. What price maximizes the firm's total revenues? What is the elasticity of demand at this point on the demand curve?14. If Starbucks's data analytics department estimates the income elasticity of demand for its coffee to be 1.6, how will the prospect of an economic boom (expected to increase consumers' incomes by 3 percent over the next year) impact the quantity of coffee Starbucks expects to sell? (LO1) 15. You are a division manager at Toyota. If your data analytics department estimates that the semiannual demand for the Highlander is Q = 150,000 - 1.5P, what price should you charge in order to maximize revenues from sales of the Highlander? (LO], LO2, LO4, L05)