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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

image text in transcribed
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 Price: $42 Price: i25 given below: IEP|= IEPI=4 1a. Are the prices charged in the two markets optimal? (Answer in YES/NO only). Word limit! 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 325. Given this, at what price should the company sell the product in Bangalore? Word limit:15

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