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A market comprises two consumers groups: high-demand types and low-demand types.The high types have demand QH = 10 - P and low types have demand

A market comprises two consumers groups: high-demand types and low-demand types.The high types have demandQH= 10 -Pand low types have demandQL= 8 -P.The monopolist has marginal costMC= 1 +Q,and is currently charging a price of 8 to the high-demand types and 6 to the low-demand types.In order to increase profits, the monopolist should

a.

increase the price to the high-demand types and increase the price to the low-demand types.

b.

decrease the price to the high-demand types and increase the price to the low-demand types.

c.

decrease the price to the high-demand types and decrease the price to the low-demand types.

d.

increase the price to the high-demand types and decrease the price to the low-demand types.

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