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6 6.2.2 If a seller sells the idential product to two separate markets, and if the elasticity of demand in Market 1 is less than
6 6.2.2 If a seller sells the idential product to two separate markets, and if the elasticity of demand in Market 1 is less than the elasticity of demand in Market 2 (at every price), and if P, is the price in Market 1, and P2 is the price in Market 2. then, in order to maximize profits, he should set the price so that OP 1 > P 2 O P 1 = P 2 OP1 < P2 All of the above are possible 4
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Macroeconomics Principles and Applications
Authors: Robert e. hall, marc Lieberman
5th edition
1111397465, 9781439038970, 1439038988, 978-1111397463, 143903897X, 9781439038987, 978-1133265238
