2. A college wants to produce an effigy for the student carnival. Preliminary studies have established that the production of these effigies requires fixed costs of $2,008 and variable costs (materials, labour, energy) of $0.90 per effigy. One of the requirements of the college being not to make a deficit, it had a market study carried out. It appears from this study that by selling these effigies for $3.75 we can hope to sell 1,000, whereas by setting the price at $2.50, the potential sales are 3,000.a) Express demand as a function of selling price and graph this function.b) Express the cost of production in terms of the selling price.c) Express the income as a function of the sale price and determine the price the college should set to maximize the income from this sale of effigies. d) Represent on the same system of axes the revenue function and the cost function and determine the prices corresponding to the break-even points and the number of effigies that will then be sold.e) Express the profit as a function of the selling price and graph this function.