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

equation: Q = 1,000 - 240P + 80PC, where Q denotes the number of drinks sold per day, P is

the drink's price, and PC is the price of drinks at a nearby caf.

(a) How many drinks will be sold if P = $1.50 and PC = $1.20?

(b) Write down the equation for the firm's demand curve for PC = $1.20.

(c) If the other caf's price increases to $1.50, what is the effect on Juice Shop's demand

curve?