There are two questions to this problem set please answer both:

1.)

A monopolist has a constant marginal cost of 2 and faces an inverse demand function of P(q) - 32 - 0.5q. Derive the optimal (uniform) price.Suppose the marginal willingness to pay in a market is depicted by the function P = W - 4990Q, where the constant W represents the average wealth of consumers The market supply function is Q - P/10. Suppose consumer wealth changes from $55,000 to $75,000. What happens to equilibrium quantity in this market? Q-100 to Q=120 Q-15 to Q-150 Q=11 to Q-15 Q=110 to Q=150