A. What are the profit maximizing prices and quantities in each market? [If you wonder about magnitudes, you can think of Q as thousand subscriptions, but do not multiply or divide Q by 1,000.]. B. What is the elasticity of demand at the optimal price/quantity points in the two markets? In which market is demand more elastic (again, at the optimal price/quantity points)? C. Do your findings under A. (prices) and B. (demand elasticities) match what we learned about elasticities and price discrimination in class? D. As a consequence of a new satellite that the Pentagon recently deployed, people in California now receive Transat's NY broadcasts and people in NY receive the California broadcasts. As a result, anyone in NY or California can receive Transat's broadcasts by subscribing in either city. Thus, Transat can charge only a single price. What price should it charge and what quantities would be sold in each market? [Hint: Be careful to add up quantities, not prices, to find total demand. Then re-arrange to derive inverse total demand and marginal revenue] E. In which of the above situations (A or D), is Transat better off? For full credit - show the different levels of profit. F. Explain intuitively why Transat is better off under A as compared to D. [If you did not find this result in D., nevertheless explain intuitively why you'd expect Transat to be better off under A.]