Jonathan's demand for bottles of wine (good x) is given by the function x = 50 5p_x (for p_x 10), while Kate's demand is x = 705 p_x (for p_x 14).

(a) Draw the above two demand functions on one graph.

(b) At the price p_x= 5, what is the price elasticity of Jonathan's demand? What is

the price elasticity of Kate's demand? Which of these two consumers' demands

is more elastic?

(c) If the price is p_x = 8, what is Jonathan's consumer surplus? What is Kate's consumer surplus?

(d) Find the combined demand function for wine bottles of Jonathan and Kate together. Graph it.

(e) What is the total market demand for wine in a market containing 5 consumers with demand like Jonathan's and 10 consumers with demand like Kate's?

(f) In the market of the previous item, what is total consumer surplus when the

price of a bottle is p_x= 8?