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There are two types of buyers of dalgona in Seoul: locals and visitors. The dalgona demand for locals is Q1=400-P (for P S 400). The
There are two types of buyers of dalgona in Seoul: locals and visitors. The dalgona demand for locals is Q1=400-P (for P S 400). The dalgona demand for visitors is Qv=1000-5P (for P s 200). a. Graph the demand curves for both types of buyers. (3 points) b. Find an equation for the market demand, QM as a function of P. (5 points) c. Graph the market demand curve. At what price(s) is the market demand curve kinked? (4 points) d. Calculate the price elasticity of market demand at P=150. (4 points) e. Calculate the price elasticity of market demand at P=300. (4 points)
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