1. In the summer of 2019, the Royal Mint minted a million 50 pence coins commemorating Brexit, which was supposed to happen on October 31. After that deadline for Brexit was missed, the initial plan was to melt all the million coins carrying the wrong date. The final decision was to melt all but10,000 coins, which would be sold to collectors at10 each.

The Chancellor of the Exchequer Sajid Javid suggests that melting the coins is costly, and taxpayers will foot the bill. However, the marginal cost of melting 10,000 coins is negligible, as is the value of the metal used to produce it.

b. Assuming the demand is linear, derive the demand curve. In other words, findandin the equation.

d. A data scientist working at the Bank of England estimated that the actual demand for October 31 Brexit memorial coins is twice bigger than you estimated in (b) at any given price. Fortunately, this update comes before the Bank had a chance to melt any coins, and as such up to a million coins are readily available. How many coins would you advise to sell, and at what price?

e. How would your answer to (d) change if the Bank has actually melted all but 10,000 coins, and minting new ones is impractical (and politically impossible!)?