Question 5. Schrecklich and LaMerde me two justiably obscure nineteenth-century impressionist painters. Tie world's total stock of paintings ly S:hrecklich is 150, and the world's stock of paintings ly LaMerde is 150. Tie 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) 2 200 4P3 21315, and the demand function for LaMerdes is D L(P) : 200 3PL P3, where PS and PL are respectively the price in dollars of a Schrecklich painting and a LaMerde painting. (0.) 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, nd 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 LaMerdas equals the supply of LaMerdes. Label the unique price combination at which both markets clear with the letter E. (d) A re in a bowling alley in Hamtrarnck, Michigan, destroyed one of the world's largest collections of works by Schrecklich. The re destroyed a total of 10 Schrecklichs. Find the equilibrium prices of works by the two painters after the re