1. Explain what would happen to equilibrium price and quantityin the market for

1. Explain what would happen to equilibrium price and quantityin the market for Pepsi if the following occurred (be sure toindicate WHY it happens as well):a. The price of Coke decreases.b. Average household income falls from $50000 to $43000c. There are improvements in soft-drink bottlingtechnology.d. The price of sugar increases and the Pepsi launches anextremely successful advertising campaign.2. Use the following equations for demand and supply to solvefor market equilibrium price and quantity:Demand: Qd = 100 4PSupply: Qs = 10 + 6P3. Using the diagram below answer the followingquestions:a. How much is the per-unit tax on cigarettes?b. What price do consumers pay after the tax?c. How much tax revenue is collected?d. What is the amount of deadweight loss?