Firstly, sorry if this is in the wrong section.

I have an exam tomorrow, and going over the practice paper I am having problems with the following question.

5. Two competitor, firm 1 and firm 2, who produce differentiated products face demand functions in the form

D1 (p1 p2) = 10 - 2 p1 + p2
D2 (p1 p2) = 10 - 2 p2 + p1

where pi is the price of good i = 1, 2

Both firms face constant marginal costs c1 = 1, and c2 = 2 respectively.

(i) Suppose that the two firms set their quantities simultaneously. Find the equilibrium prices and quantitites in this market.

(ii) Suppose that firm 1 moves first by setting its price, followed by firm 2 which sets its quantity after observing the price set by firm 1. Find the equilibrium prices and quantities in this market.


I know how to get the equilibrium prices for part (i), using a 2 firm Bertrand Game.

My question is, how would I get the quantities? And then secondly, how would I go about answering part (ii)

An explanation of what I need to do would be great if you don't actually want to do all the actual calculations. Thanks.

*P1 and p2's should have the 1's and 2's sub scripted, but I couldn't find a button to do it.)