The Juice Shop sells iced soft drinks. Management has found that demand is estimated by the equation:

Q = 2,000 - 480P + 160P_C, where Q denotes the number of drinks sold per day, P is the drink's price, and P_Cis the price of drinks at a nearby caf.

(a) How many drinks will be sold if P = $2.25 and P_C= $1.80?(5 points)

(b) Write down the equation for the firm's demand curve for P_C= $1.80.(5 points)

(c) If the other caf's price increases to $2.25, what is the effect on Juice Shop's demand curve (up, down, left, right, by how much)?(5 points)

(d) For a good that has a price elasticity of demand of 1.5 and a marginal cost of $50 per unit, what is the profit-maximizing price?(5 points)

(e) A firm's demand curve is estimated to be Q = 400 - 5P, where Q is quantity and P is the price of the good. At P = $15, what is the point elasticity of demand?