You are associated with a corrupt broker in Philadelphia. The broker has paid for tomorrow's orange juice report, which reports on the crop conditions in florida. The report will be released @ 10 am tomorrow. The market demand and supply curve that exist now, and at the opening of the market, tomorrow, at 9 am are: a) The equation for the market demand for oj is P = 230 - .5 Q b) The equation for the market supply for oj is P = 80 + .5 Q. If the crop is damaged, it will change the slope of the appropriate curve by 1/10 for every 10% of damage: so, for example 30% of damage will change the slope of the appropriate curve from .5 to .8, this is the only effect on the curves. Your boss has a copy of an erroneous report that says 20% of the crop is damaged, importantly, he does not know this is an erroneous report, he bribed an official for this report, and the official, maliciously gave him erroneous data. He is operating under the assumption that he has the correct report, and only he has it. The following day, the market opens unchanged (using the equilibrium price derived above in (a) & ( b)) at 9 am (before the report). Up to what price will your corrupt boss buy or sell oj? If your boss raises the price of oj in buying it, or lowers it by selling, up to what price should he stop buying, or selling (or perhaps you could take the opposite side of the trade..)? Assume that only your boss's actions will move the price. When the actual report is released at 10 am (ceteris paribus), and your boss has pushed the market to the level he expects due to the fictitious crop report, and the market will return to its 9 am equilibrium, what will happen? 5 pts each for the correct price: there are 2: a. the opening price at 9 am, b. the price just before the report's release at 10 am (assuming your boss has pushed the price to its maximum (minimum) level based on his evil expectations. 2 pts for deciding whether your corrupt boss is a buyer or seller. 2 pts for your opinion on whether crime pays in this case