The company DrinkMe produces reusable plastic water bottles. Demand for DrinkMe's product

Q=39620P+2Pw

where Q is the quantity of DrinkMe water bottles, P is the price of DrinkMe water bottles, and Pwis the average price of a standard pre-filled disposable bottle of water (e.g., Dasani). Currently, the average price PwPwof pre-filled disposable bottles of water is $2.00.

Q1: What is DrinkMe's revenue if it charges a price of P = $10 ?

Group of answer choices

a. $960

b. none of the other choices is correct

c. $196

d. $2,000

e. $1,960

Q2: Continue to assume that P = $10 and assume that DrinkMe has constant marginal cost less than $10. Suppose the average price P_W of standard pre-filled disposable bottles of water increases to $4. What happens to DrinkMe's quantity and profit?

Group of answer choices

a. Q goes up and profit goes up

b. Q goes down and profit goes up

c. Q goes down and profit goes down

d. none of the other choices is correct

e. Q goes up and profit goes down