Question
In the city of Johor Bahru in Malaysia, the locals' demand function for beets is ql = max{200 - p,0} and the tourists' demand function
In the city of Johor Bahru in Malaysia, the locals' demand function for beets is ql = max{200 - p,0} and the tourists' demand function for beets is qt = max{90 -4p,0}.
e. Draw the locals' demand curve for beets, the tourists' demand curve for beets, and the market (locals' and tourists') demand curve for beets. Use different color for each curve
f.At what non-zero price there is a kink in the total demand curve?
g.What is the market demand function for prices below the kink?
h.What is the market demand function for prices above the kink?
I. At what price the price elasticity of market demand is -1?
j.At what price will the revenue from the sale of beets be maximized?
k. If the goal of sellers of beets to maximize revenue, will beets be sold to locals only, to tourists only, or to both?
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