3. Optimal Pricing with Multiple Market Segments 'Gnomes Global Trip 3' is being released on video-on-demand (VOD) simultaneously in the US and in the UK later this year. Demand has been estimated as: qp) = 500,000 12,5003? in the US and qp) : 80,000 2,500p in the UK, where p is the price of a VOD movie rental in the local currency and q is the number of rentals per day. Once the studio has produced and released the film, there is no cost to making it available to an additional customer. a) If the studio can set different prices in each country, what price should it set for a VOD rental of its film in the US, and what price for a VOD rental of its film in the UK? If you need it, use an exchange rate of 0.81 /$ (i.e., 0.81 GBP/USD). [Hint You won't need it.] b) Identify the type of advanced pricing strategy being used. Justify your answer. Explain what (about the product, consumers, and/or the market) makes the strategy feasible in this case