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Question 3 (Price Discrimination by Indicators) A monopolist sells to consumers who belong to two groups: group-I and group-II. The aggregate behavior of group-I consumers is captured by the demand function: D,(p) = 20 -p/2, while the aggregate behavior of group-II consumers is captured by the different demand function: Du(p) = 24 - p/2. (a) Draw the two demand curves (show both intercepts). The monopolist has the following cost function: C(q) = 4q. We shall distinguish two cases. CASE 1: The monopolist cannot tell which consumer belongs to which group and, therefore, must charge the same price to all consumers. (b) Derive the aggregate demand curve, inverse demand curve and the marginal revenue curve. (Hint: The demand curve has two-parts: demand when P > 40 and P