A monopolist produces at constant marginal cost c = 1. It sells the product in the domestic market, where demand is qD = 5 pD, and some foreign markets with total demand qF = 2pF.

1. Find the prices that will set in each market and the proportion of output that exports.
2. What is the relationship of the price in each market with the relative elasticities of demand?
3. Suppose now that some domestic customers discover that can buy the good of the monopolist in the foreign market. How do you expect that this would change domestic demand and pricing by the monopolist?