Problem 1 = Frank Buckley sells his famous bad tasting but very effective cough medicine in...

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Problem 1 = Frank Buckley sells his famous bad tasting but very effective cough medicine in Toronto and Montreal. The demand functions in these two urban areas, respectively, are PT = 18-QT and PM = 14-QM where PT and P are per-bottle prices. Buckley's plant is located in Kingston, Ontario, which is roughly midway between the two cities. As a result, the total cost of producing and delivering cough syrup to each town is: 2+3Q; where i = T, M. Frank Buckley can only charge a per-bottle price for his cough medicine. Task 3: Which way of pricing gives the seller a higher profit? Which way of pricing do buyers in Toronto prefer and which way of pricing do buyers in Montreal prefer? Why? (You do not need to calculate the profit or the consumer surplus.) Task 4: Is the society better off when different prices are banned? Show a way to Problem 1 = Frank Buckley sells his famous bad tasting but very effective cough medicine in Toronto and Montreal. The demand functions in these two urban areas, respectively, are PT = 18-QT and PM = 14-QM where PT and P are per-bottle prices. Buckley's plant is located in Kingston, Ontario, which is roughly midway between the two cities. As a result, the total cost of producing and delivering cough syrup to each town is: 2+3Q; where i = T, M. Frank Buckley can only charge a per-bottle price for his cough medicine. Task 3: Which way of pricing gives the seller a higher profit? Which way of pricing do buyers in Toronto prefer and which way of pricing do buyers in Montreal prefer? Why? (You do not need to calculate the profit or the consumer surplus.) Task 4: Is the society better off when different prices are banned? Show a way to