QUESTION 1 James mainly sells confectionery items, newspapers, magazines and cigarettes in his convenience store. Noting his small business is not thriving, he thought of selling hot pies and rolls too. Suppose the total cost function for rolls and pies is, TC=300+530, Q= Ql+Qz where 01 and Q: denote the quantities of rolls and pies respectfully. If P1 and P2 denote the corresponding prices, then the inverse demand equations are: Q, = 73 P, and use2 = 100 P2 REQUIRED: a) [flames decides to charge the same price for rolls and pies per day (that is, P1 = P2), how many of rolls and pies in total should he make in order to maximize the prot of a particular day? 1:) If James decides to charge different prices as above for rolls and pies per day (that is, P, at P2), how many of rolls and pies should he make in order to maximize the prot of a particular day? c) Which of the above options (a) or (b) is more protable? Provide the rationale for your answer. d) If James decides to make a total of Slrolls and pies per (la).r and charges different prices as above (that is, P1 =f= P2 ), how many of rolls and pies each should he make in order to maximize the prot of a particular day? Estimate the increase in maximum prot which results when the total number of rolls and pies per day (51) is increased to 52 [note: assume second-order conditions are satised]. e) The CDVID-IQ pandemic saw the lockdown of many cities to reduce the spread of the virus. This unprecedented move can be viewed as a negative demand shock. Explain the impact of the lockdown of the city where James' convenience store is located on the demand functions of rolls and pies (halfa page maximum)