As Election Day approaches in the mayoral race, the demand for buttons is hitting unprecedented heights. Three months before Election Day, your friend John, who currently has a small factoiy producing badges, is considering expanding production. Previously, this ve1y competitive industry was relatively stable, and demand and supply were estimated at: Demand: Q = 100 2 P Supply: Q = 2 P (Units are 100,0003 of buttons and price in cents.) John estimates that over the past months, monthly demand has risen to a higher level: Q = 140 2 P He estimates demand will remain at this level until the election, and then fall back down to the old level. John calculates that by buying a new machine for $5,000 he would be able to produce 40,000 more buttons a month at a marginal cost of 30c. (Assume that there are no other additional costs of production.) (a) What was the old price of buttons? How many buttons were being produced at this price? (b) What is the new price of buttons? How many buttons are produced at this price:rJ (c) ShouldJohn buy the machine? In answering this question, notice that if John went ahead and bought the machine his additional production would be tiny in comparison with the overall siZe of the market and would have negligible effect on price. Also, in no more than a couple of sentences mention any drawbacks in this analysis