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2. You run a healing &: cooling service company in a small town. When a homeowner has a problem with Their furnace or air conditioner,

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2. You run a healing &: cooling service company in a small town. When a homeowner has a problem with Their furnace or air conditioner, they call you and one of your workers goes out to diagnose and fix the problem. Your company is the only such company in the town. However, many homeowners are handy themselves, so many are able to fix problems on their own. Each homeowner in town is identical and their annual demand curve for the service that only you provide can be described by the cqualion Q - 100 -058, where 4 is the number of service calls made per your and P is the price you charge per service call It cools your company $20 in marginal cost for much service cull. (Fuck, parts, Inbor, de) For the purposes of this question, let's ignore any fixed costs that you have. (n) If you had to set and slick to a single price pre service cull, what price should you charge? (h) A new analyst that you hire from Rome suggests that you run your business me & "Service Club". Homeowners will sign up for this club, for which they'd pay a fixed annual for. You could then aloo change Them for each service call you make for them. If you did this, what should you set the annual for to? What should you change per service cull! (c) Comparing the single price with no annual for option to the "Service Club" option, which do consumers prefer? Which do you (the producer) prefer? Why? 3. When much schooling in the US moved online due to the COVID-19 crisis, many educators and policy makers grew worried about the "technology gap" that exists between sdalents from low-income and high-income families. There is a worry that many gludents from low-income Ismilkes are at risk of not being able to afford the right technology and internet connectivity to keep up with their school work. Seeking to solve this problem, members of Congress are considering & new Lux on Inplops, with the revenue from the tax being used to help fund educational programs for low-income students. Suppose that laptops are bought and sold in a porkelly competitive market in the US where the demand can be given by P- 400-01050 and supply can be given by P - 0101030. In both equations P B in dollars per laptop and of is the number of laptops demanded or produced per month. (Ignore any imports or exports of laptops.) One senator proposes a hill that would require laptop sellers to pay a tax of $310 per laptop sokl. rival senator offers a bill that would make laptop consumers pay $10 per laptop bought. In your answers, be as quarlilafine as possible. "Neither is not an acceptable answer. You have to pick one of indicale why you world be indifferent. (n) If all you care shoul is funding the educational programs for low-income students, which of three two proposed hills would you support? Whyr (h) As an coonomist, which of these two bills is better for society? Whyr

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