There is only one pizza parlor on West Caicos Island. The restaurant's cost for pizza is given by C(q) = (q^2)/2. For many years, no travelers visited the island. The demand for pizza by the island's residents was D_r(p) = 1020 - 4p where p is the price per pizza.

1) What was the pizza parlor's profit maximizing output and price?

Tourists decide to come. The tourists' demand for pizzas is to D_r(p) = 380-p.

2) What is the total market demand, and what is the pizza parlor's new profit maximizing output and price?

3) Suppose that the restaurant is able to differentiate between the residents and tourists by examining their residency ID cards and passports. What prices will the restaurant charge the residents and tourists, respectively? How many pizzas will the residents consume and how many will tourists consume, respectively?

4) After the pizza parlor implements different prices for tourists and residents, at those prices, which demand curve is more elastic, the tourists' demand or the residents' demand?