A price discriminating monopoly is deciding to sell its product in two different markets A and B. The monopoly faces a constant marginal cost of 2. The demand curve in market A is given by PA = 6 QA3/4 while the demand curve in market B is given by PB = 7 QB2/3 .

(a)Find the profit maximising quantities, prices and total profits in each market. Show all the steps of your calculations. (4 + 4)

(b)Based on your answers to (a), in which market is the price-elasticity of demand higher? (2)