Question 5 - (0.25pts) You entered Teknosa to buy a laptop, but did not decide which model to buy. You decide to buy the model with the highest surplus. Below are the models you consider with current prices and your willingness-to-pay. Please explain which model will you choose and why. Question 6 - (1 pts) A supplier is selling tomatoes in two cities, Antalya and Istanbul. It costs him 1 TRY per kg of tomatoes delivered in each city. Let p1 be the price of a kg of tomatoes in Antalya and p2 be the price of a kg tomatoes in Istanbul. The price-response curves in each city: Antalya: d1(p1)=500100p1 Istanbul: d2(p2)=1,200200p2 a) (0.3 pts) Assuming the supplier can charge any price he likes, what prices should be charged for a kg of tomatoes in Antalya and Istanbul to maximize total contribution? b) (0.5pts) What are the corresponding demands, revenues, and total contributions in each city? c) (0.2pts) What is the total demand, total revenue, and total contribution over the two cities? Question 7 - Nazar restaurant makes a market analysis to find out that the minimum willingness-topay (wtp) for the lunch is $2.5 and maximum wtp is $12.5. Suppose that the wtp is uniformly distributed between these limits, that there are 100 lunch customers considering to go to the Nazar restaurant and that the cost of the lunch is $5. a) (0.5 pts) The restaurant classifies anybody with wtp more than $8.5 as a high-paying customer. The rest are considered low-paying customers. The restaurant will offer 'a la cart service to high-paying customers and a lunch buffet to low-paying customers. Let d1,d2 denote the demand of high-paying and low-paying customers, obtain the demand functions d1(p) and d2(p) for 2.5p12.5. b) (0.5 pts) If you are told that the demand functions are: d1(p)=min{50,(12510p)+}d2(p)=min{50,(7510p)+} at what level of wtp (i.e., at what value of v ) is the market split in to high- and low-paying customers? (Note that this number was v=7 on your slides. You can try to use minimum value of demand and demand function to obtain the new value of v.) Then, find the optimal prices p1 and p2 to charge for the markets specified. c) (0.5pts) What is the total profit when Nazar charges p1=9 and p2=6 in the markets specified in part b