Please, complete this.

Exercise 1.6 Peak Load Pricing Electricity demand varies over time. It is expensive to maintain generating capacity sufficient for meeting the peak demand-especially if that capacity sits idle the rest of the time. In this exercise, assume that there are two hourly demand levels, peak and off-peak. Both are influenced by price. For the peak demand, assume Q=125P, while off-peak demand is given by Q=701.2P. Peak demand is experienced 8 hours each day (for example, from 10 AM until 6 PM). Assume that capacity costs, expressed on a daily basis, equal 600 for each unit of capacity (one unit of capacity can serve one unit of demand per hour-but note that capacity can be reused across hours, that is, it is not used up in production). There are no other costs to consider. Compare the profitability of two pricing schemes: first, a single price of 50 for every hour of the day, and second, a peak load pricing scheme that charges 75 during peak hours and 25 during off-peak hours. Also, show the demand profile over a typical day under each of these pricing structures