3. Andy Dwyer’s band has a new album out. The demand for their music is characterized by the following demand function:

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3. Andy Dwyer’s band has a new album out. The demand for their music is characterized by the following demand function:

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3. Andy Dwyer’s band has a new album out. The demand for theirmusic is characterized by the following demand function: 5 − p,where p denotes the price of their album. Each CD costs $3 tomake.
a. Please derive the marginal revenue curve? [3 points]
b. How much should Andy Dwyer charge for the CD and how many CDswould he sell? [5 points]
c. What is the social optimum number of CDs? [3 points]
d. Please draw a graph to indicate what you found in Parts a toc. [4 points]
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