(NEED HELP WITH PART B) Let there be two firms in the market Aand B, selling similar but not identical goods. Both firms produce goods at a marginal cost of $1 per unit.Given prices p_Afor good Aand p_Bfor good B, demand is given by the following equations:

q_A=9+2p_B3p_A

q_B=9+2p_A3p_B

Note that this problem is related to models we covered in class, but it is not a specialcase of the Bertrand model.

A. HowmuchquantitydofirmsAandBeachsellifbothfirmschargeapriceof

p=2?Howmuchdoeseachfirmsellifbothchargeapriceofp=4? (6 points)

a. aT $2 = 7, AT $4 = 5

B. Given your answer to the previous part, explain what problem would arise if we used the similar-looking demand curves of

q_A=9+3p_B2p_A

q_B=9+3p_A2p_B.

Why would these demand curves be implausible while the original ones are plausible?