The demand function of dog breeders for electric dog polishers is qb = max {200−p, 0}, and the demand function of pet owners for electric dog polishers is qo = max {90 − 4p, 0}.
(a) At price p, what is the price elasticity of dog breeders’ demand for electric dog polishers? _________. What is the price elasticity of pet owners’ demand? _________.
(b) At what price is the dog breeders’ elasticity equal to ________. At what price is the pet owners’ elasticity equal to _________.
(c) On the graph below, draw the dog breeders’ demand curve in blue ink, the pet owners’ demand curve in red ink, and the market demand curve in pencil.
(d) Find a nonzero price at which there is positive total demand for dog polishers and at which there is a kink in the demand curve. _______. What is the market demand function for prices below the kink?_______. What is the market demand function for prices above the kink? __________.
(e) Where on the market demand curve is the price elasticity equal to______. At what price will the revenue from the sale of electric dog polishers be maximized? _______. If the goal of the sellers is to maximize revenue, will electric dog polishers be sold to breeders only, to pet owners only, or to both? __________.