please answer 1a. thru 1e.

2 Basic product differentiation Suppose that only two firma produce soft drinics which are imperfect sabatitutes. Firm 1 's product is preferred by people who like swater sodia, while firm 2 's product is preferred by people who like a lower calorie soda. Suppose the firms demands are as follows: D1(p1,p2)=A2p1+p1D2(p2,p1)=A2p2+p1 Suppose each firm has identical marginal coot sero. Assume that (0,1/2). 1.a Find firms best responser and draw a graph of them on Pnp2 space. 1.b What are the equalibrium prices atud quantities? 1.c Suppose that firm 2 finds a way to make its product mote firzy. Assume this only affects its demand result only its demand. The new demand is: D21(p2,p1)=Ap2++p1 Find firns best respotises and draw a graph of them on p2p2 space. What are the equilibriam prices and quatitities? 1.d Suppose instead, that firm 2 finds a way to make their product sweeter. Assume this change only affects demands in the following way. D12(p1,p2)=A2p1+21p2 Find firms best responses and draw a graph of them on p1p2 space. What are the equilibrium prices and quintities? 1.e Which innovation helpo firm 2 more? Which is better for firm 1 ? 2 Basic product differentiation Suppose that only two firma produce soft drinics which are imperfect sabatitutes. Firm 1 's product is preferred by people who like swater sodia, while firm 2 's product is preferred by people who like a lower calorie soda. Suppose the firms demands are as follows: D1(p1,p2)=A2p1+p1D2(p2,p1)=A2p2+p1 Suppose each firm has identical marginal coot sero. Assume that (0,1/2). 1.a Find firms best responser and draw a graph of them on Pnp2 space. 1.b What are the equalibrium prices atud quantities? 1.c Suppose that firm 2 finds a way to make its product mote firzy. Assume this only affects its demand result only its demand. The new demand is: D21(p2,p1)=Ap2++p1 Find firns best respotises and draw a graph of them on p2p2 space. What are the equilibriam prices and quatitities? 1.d Suppose instead, that firm 2 finds a way to make their product sweeter. Assume this change only affects demands in the following way. D12(p1,p2)=A2p1+21p2 Find firms best responses and draw a graph of them on p1p2 space. What are the equilibrium prices and quintities? 1.e Which innovation helpo firm 2 more? Which is better for firm 1