(a) The Ironman 70.3 Cozumel Triathlon segments its participants into two groups, traveling and local participants. Traveling participants are relatively insensitive to price and have an inelastic demand curve D_T. The number of traveling participants will be Q_T = 600, and each will pay a registration fee of P_T = $220/entry. Producer surplus, PS_T, will be relatively large.
(b) Local participants have a relatively elastic demand curve D_L. A greater number of locals will register for the triathlon (Q_L = 700) at a lower price (P_L = $170/entry). Producer surplus for locals, PS_L, is relatively small.