Please answer all parts.

2. Imagine you are the owner of Ford Canada. You are trying to determine what price to set for your newest vehicle you are introducing to the Canadian market. You hired an economist to estimate the demand curve for this vehicle, and were told it is: q = 20, 000 0.5;} a) (5 marks) Suppose you set the price equal to $15,000. What would be the total revenue you would earn from selling this car? b) ( 10 marks) What is the elasticity of demand for cars at this price? According to economic theory, why would this prot maximizing rm be making a mistake by pricing the car at a price that results in this type of elasticity of demand? Your answer should include a discussion of intensive and extensive margins. c) (5 marks) Suppose the rm wished to maximize its revenue. At what price should it sell its car? How much revenue will it earn at this price? What is the elasticity of demand at this point