Target produces a good with significant network externalities.  The willingness to pay equation is p = 1 – q + 2.5q2 .     Show on the graph the firm’s demand curve at each price from 0 < P < 3.      What three equilibrium values of q may result if Firm A sets a price of $1.5?  Indicate them on your graph.  [the quadratic equation helps you solve for one of them.]      Are the equilibria you identify stable?  Does stability matter to Acme?

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