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The market supply curve of action movies is given by QS=10+50P. The demand for action movies can be segmented into two components.
The first component is the demand for action movies by college students. This demand is given by QC= 200 - 20P. The second component is the demand for action movies by all others. The demand is fiven by QO=180 - 18P.
(a) Derive the total market demand curve for action movies.
(b) draw the total market demand curve. Label the axes and intercepts. Discuss how the price elasticity of demand changes along the demand curve.
how do these factors affect the elasticity of demand and what would happen if there was a change in these factors
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