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Question 5. Schrecklich and LaMerde are two justiably obscure nineteenth-century impressionist painters. The world's total stock of paintings by Schrecklich is 100, and the world's stock of paintings by LaMerde is 150. The two painters are regarded by connoisseurs as being very similar in style. Therefore the demand for either painter's work depends both on its own price and the price of the other painter's work. The demand function for Schrecklichs is D3 (P) = 200 4PS 2PL, and the demand function for LaMerdes is D L(P) = 200 3P; PS, where PS and PL are respectively the price in dollars of a Schrecklich painting and a LaMerde painting. (a) Write down two simultaneous equations that state the equilibrium condition that the demand for each painter's work equals supply. { b ) Solving these two equations, find the equilibrium price of Schrecklichs and the equilibrium price of LaMerdes . (c) On a diagram, draw a line that represents all combinations of prices for Schrecklichs and LaMerdes such that the supply of Schrecklichs equals the demand for Schrecklichs. Draw a second line that represents those price combinations at which the demand for LaMerdes equals the supply of LaMerdes. Label the unique price combination at which both markets clear with the letter E. (d) A fire in a bowling alley in Hamtramck, Michigan, destroyed one of the world's largest collections of works by Schrecklich. The fire destroyed a total of 10 Schrecklichs. Find the equilibrium prices of works by the two painters after the re