Shalimar Jubal has determined that demand for her phone cases is given by Q = 250 - 4P and a cost equation given by C = 50 + .5Q. a. Determine the optimal price and quantity for the firm. (Price should be calculated to nearest cent. Example: $5.43 should not be rounded to $5.00.) b. Suppose that costs change to C = 40 + 2.0Q. Determine the new optimal price and quantity. Explain why the results differ from those in part a. Solution a) The optimal price and quantity would be when price is equal to the costs of supplying and hence we change the demand function as a price function P=(250-Q)/4 When we equate price and cost we get 62.5.