A price discriminating monopolist sells in two separate

3. 1) A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges $5 in one market and $7 in the other market. At these prices, the absolute value of price elasticity in the rst market is 0.5 and the absolute value of price elasticity in the second market is 1.3. How can the monopolist raise the prot for sure? Please write every possible way. (Raise or Lower price in the rst market or the second market or both markets?) (3pts) 2) In problem 1), what if the production cost is zero? Please write every possible way. (3pts)