Consider the market for retail gasoline for the state of Indiana. The inverse market demand for this market is: p= a- Q where p is the price per gallon, a > 1 is a demand shifter, and Q" is the market quantity de- manded. There are n = 8 identical gas stations that each have the same cost function: c (9 ) = 92 + 9 where q is the output per gas station. Assume that this market is perfectly competitive and oper- ates in the short run. |2 points each (a) Find the industry supply curve. (b) Find market price p* and market size/output Q* in terms of problem givens. (c) Calculate gas station profits. Are gas stations making a profit or loss in this short run equi- librium? (d) Construct a graph(s) that represents both a typical gas station's profit maximization problem and the industry on the whole. Make sure that everything is labeled. (e) What happens to profit maximizing output per gas station if a increase from a to 2a