1. Suppose there are two types of consumers, type-A consumers and type-B consumers, in the market. There are 200 type-A consumers in the market, while there are 100 type-B consumers in the market. The demand function of each type-A consumer is A () = 10 4, while the demand function of each type-B consumer is B () = 82.

(a)Derive the aggregate market demand. Illustrate the market demand in a graph.

(b)If p=1, what is the elasticity of aggregate market demand? If p=3, what is the elasticity of aggregate market demand?

(c)Now suppose the market supply function is () = 120, find the market equilibrium.