The market for Jonquel's Artisan Decorative Wreaths is uniformly distributed equally in every direction from her store, as in the L'osch spatial demand model. Her wreaths are delicate and beautiful enough that they are easily damaged in shipment, so she only sells at her store. At each point, the weekly demand for the wreaths is given by:

Qd = 600 15P

(a) Consumers face a combined financial and temporal cost of $0.40 per mile traveled to get to the wreath store. Identify the equation of the L'osch spatial demand curve for Jonquel's wreaths if she charges $18.00 and graph these relationships using the 4-graph picture used in lecture (and found on p. 30 of Capello). You must label each axis and the intercept values on each graph.

(b) Find the new equation for the L'osch spatial demand curve if Jonquel increases prices to $24.00, but travel costs are reduced to 0.25 per mile. Illustrate that change on the original graphs in a different color ink.