Consider the stainless steel straw market in San Francisco. Suppose there are two types of individuals with demand for stainless steel straws: young professionals (Y) and students (S). The inverse demand curve ofyoung professionals for straws is: P = 10 (1 /1 , 000)q_y . Students' inverse demand for straws is P = 10 (1/2 ,000)q_s where p is the price of a straws, q_y is the quantity of straws purchased by young professionals and q_s is the quantity purchased by students.

(a) Convert the young professionals' and students' inverse demand curves into "standard demand" curves that state the quantity of straws demanded by each group at a given price.

(b) If the total stainless steel straw market in San Francisco consists of young professionals and students, what is the market demand for stainless steel straws? It may help to plot the young professionals' demand, students' demand, and the market demand curve. (Hint: it may be easier to use inverse demand when you are ready to plot the curves).

(c) Suppose that the price of a straw is initially p₀ = $2. How many straws do young professionals and students each demand? What is the consumer surplus of the young professionals?

(d) Due to an increase in the price of stainless steel, the price of straws is raised to p₁ = $3. Now how many straws do the young professionals demand? What is the change in their consumer surplus?