If the demand curve for Pfizer's Norvasc, a blood pressure medication, is more elastic in the United States than it is in Mexico, how could Pfizer use this information to maximize their profits?

 

1)Since Mexico is a poorer country than the United States, in this situation it makes more sense for Pfizer to charge only one price in both countries.

 

2)They could segment the markets and charge a higher price for Norvasc in Mexico than in the United States.

 

3)They could segment the markets and charge a lower price for Norvasc in Mexico than in the United States.

 

4)They could choose to sell Norvasc only in Mexico.