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Math for Econ I – Homework Assignment 2New York UniversityFrom our textbook, read sections 4.9, 4.10, 5.1, 5.2, and 5.3.Please write neat solutions for the problems below. Show all your work. If you only write the answer with no work youwill not be given any credit.•Write your name and recitation section number.•Staple your homework if you have multiple pages!1. A firm produces a commodity and receives $100 for each unit sold. The cost of producing and sellingxunits is20x+ 0.25x2dollars.(a) (3 pts) Find the production level which maximizes profit. (in other words, find thexthat maximizes profit)(b) (3 pts) A tax of $10 per unit is imposed on the firm. What is the new optimum production level?2. The demand curve for a product is given byq= 120000-500p, and the supply curve is given byq= 1000pfor0≤q≤120000, where price is in dollars.(a) (2 pts) At a price of $100, what quantity are consumers willing to buy and what quantity are producerswilling to supply? Will the market push the prices up or down?(If supply>