Question: Suppose a manager is interested in implementing third-degree price discrimination. The manager knows that the price elasticity of demand for Group 1 is 2 and

Suppose a manager is interested in implementing third-degree price discrimination. The manager knows that the price elasticity of demand for Group 1 is −2 and the price elasticity of demand for Group 2 is −1.2. Based on this information alone we can conclude that the price charged to Group 2 will be:

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