Question: Suppose you can separate consumers into two groups: Group 1 has a price elasticity of demand = -3 and group 2 has a price elasticity

Suppose you can separate consumers into two groups: Group 1 has a price elasticity of demand = -3 and group 2 has a price elasticity of demand of -9. If you could conduct third degree price discrimination, which group would you charge a higher price to? Why? What would be the relative price of group 1 to group 2? Suppose that the profit maximizing price for group 2 is $12. What price should I charge group 1? Show work.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Suppose you can separate consumers into two groups: Group 1 has a price elasticity of demand = - 4 and group 2 has a price elasticity of demand of -6. If you could conduct third degree price...

1) Suppose you can separate consumers into two groups. Group 1 has a price elasticity of demand = -4 and group 2 has a price elasticity of -6. If you could conduct third degree discrimination, which...

Suppose you can separate consumers into two groups: Group 1 has a price elasticity of demand = -3 and group 2 has a price elasticity of demand of -9. If you could conduct third degree price...

plz provide 5 or as many pic for each question that are related to the question below, also it will be nice if u can do it in powerpoint and post screenshot of each question ECON 1101 - Technical...

Suppose you can separate consumers into two groups:Group 1 has a price elasticity of demand = -4 and group 2 has a price elasticity of demand of -6.If you could conduct third degree price...

Please help with the following questions: Suppose you can separate consumers into two groups:Group 1 has a price elasticity of demand = -2 and group 2 has a price elasticity of demand of -6.If you...

Suppose you can separate consumers into two groups:Group 1 has a price elasticity of demand = -2 and group 2 has a price elasticity of demand of -6.If you could conduct third degree price...

ECON 1101 - Technical Literacy Assessment MANDATORY ASSIGNMENT Below is a short passage on Elasticity, costs and Customers. At the end of the passage, some questions are given. Assignment :( 30...

Below is a short passage on Elasticity, costs and Customers. At the end of the passage, some questions are given. Assignment:(15 points) 1. You will need to create a short tutorial video not more...

Write a program that finds all of the prime numbers between 1 and 1000 in C++

Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not? a. Yes, they are treated as revenue at the time of receipt because the company has access to the cash....

A portfolio manager must be aware of an investors investment goals and investment constraints. For example, an institutional investor such as a property and casualty insurance company, which supports...

suzys temporary employee ( STE ) business located in big city can do online criminal background check in house for $ 2 . 8 8 per search with fixed cost of $ 3 0 0 0 0 . a third party firm offered...

8. Now spend two to three hours walking around listening to what people are saying. Place yourself in a place where you can hear what people are saying clearly and distinctly, for example in a cafe,...

5. Think through your own way of representing the world. What is your main pattern: Visually, verbally, emotions, smells, tastes?

1. Think of a situation in the workplace where you meet a person for the first time, which you know you will have a lot to do with in the future. a. Name three things about yourself that you will try...