1. (a)The market demand for a product is given by^D= 3000 25. There are many firms, in a perfectly competitive industry, that produce this product, each with a total cost function() = 350 + 2². What will be the equilibrium number of firms in the industry? Show your work.

(b)The demand curve faced by a particular monopolist has a constant elasticity (so it does not change with quantity sold) of2. Due to a spike in the price of oil, her marginal costcincreases by40%. By how much will her price increase? Show your work.