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PLEASE GRAPH THE EQUILIBRIUM! Question 2 At a busy intersection on Route 309 in Quakertown, Pennsylvania, the convenience store and gasoline station, Wawa, competes with

PLEASE GRAPH THE EQUILIBRIUM!

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Question 2 At a busy intersection on Route 309 in Quakertown, Pennsylvania, the convenience store and gasoline station, Wawa, competes with the service and gasoline station, Fred's Sunoco. Gasoline sold by one store is a close substitute for gasoline sold by the other store. The stores compete in prices for gasoline sales. The demand for Wawa's gas is qw = 680 - 500pw + 400ps, and the demand for Fred's gas is qs = 680 - 500ps + 400pw. Assume that the marginal cost of each gallon of gasoline is m = $2. The gasoline retailers simultaneously set their prices. a. What is the Bertrand equilibrium? Graph the equilibrium

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