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=680500pW+400ps, and the demand for Fred's gas is qs=680500ps+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. b. Suppose that for each gallon of gasoline sold, Wawa earns 25 per unit from its sale of salty snacks to its gasoline customers. Fred sells no products that are related to the consumption of his gasoline. What is the Bertrand equilibrium? Show the new equilibrium on the same graph as in (a) above. 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=680500pW+400ps, and the demand for Fred's gas is qs=680500ps+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. b. Suppose that for each gallon of gasoline sold, Wawa earns 25 per unit from its sale of salty snacks to its gasoline customers. Fred sells no products that are related to the consumption of his gasoline. What is the Bertrand equilibrium? Show the new equilibrium on the same graph as in (a) above