There are two consumers, say and in the market their corresponding inverse demand curves, respec-
tively, are:
() = 100 − 05 and () = 50 − 02
2a What is the market demand curve?
2b Calculate the own-price elasticities at = 60? What is the own price elasticity at = 10?
2c Calculate the maximal revenue that may be obtained in this market? What are the price and quantity
at that point.
2d Calculate the consumers’ surplus at the revenue maximizing price