Question
A wheat manufacturing company is practicing price discrimination in two cities, namely Bangalore and Kolkata. The price and the price elasticities of demand in the
A wheat manufacturing company is practicing price discrimination in two cities, namely
Bangalore and Kolkata. The price and the price elasticities of demand in the two markets are
given below:
Bangalore KolkataPrice: ?42 Price: ?25|??| = 2 |??| = 41a. Are the prices charged in the two markets optimal? (Answer in YES/NO only).
Word limit:1
1b. Use appropriate concepts to support your claim in Question 1(a).
Word limit:25
1c. The marketing research wing of the company found that the optimal price should be
?25. Given this, at what price should the company sell the product in Bangalore?
Word limit:15
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