Homework set 6Due on March 26th, 5pm NY timeExercise1The demand function of dog breeders for electric dog polishers isqb= max{200-p,0},and the demand function of pet owners for electric dog polishers isqo= max{90-4p,0}.(1) At pricep, what is the price elasticity of dog breeders’ demand for electric dogpolishers? What is the price elasticity of pet owners’ demand?(2) At what price is the dog breeders’ elasticity equal to -1? At what price is the petowners’ elasticity equal to -1?(3) On a graph, draw the dog breeders’ demand curve, the pet owners’ demand curve,and the market demand curve, and label each clearly.(4) Find a nonzero price at which there is a positive total demand for dog polishersand at which there is a kink in the demand curve.What is the market demandfunction for prices below the kink? What is the market demand function for pricesabove the kink?(5) Where on the market demand curve is the price elasticity equal to -1? At whatprice will the revenue from the sale of electric dog polishers be maximized? If thegoal is to maximize revenue, will electric dog polishers be sold to breeders only, topet owners only, or to both?Exercise2The demand function for drangles isq(p) = (p+ 1)-2.(1) What is the price elasticity of demand at pricep?(2) At what price is the price elasticity of demand for drangles equal to -1?(3) Write an expression for total revenue from the sale of drangles as a function oftheir price. Use calculus to find the revenue-maximizing price. Check the second-order condition.(4) Suppose that the demand function for drangles takes the more general formq(p) = (p+a)-bwhereagt; 0 andbgt; 1.Calculate an expression for the priceelasticity of demand at pricep. At what price is the price elasticity of demand equalto -1?