Healthy Pharmaceutical Bhd. supplies medicines to private and government clinics. The company estimated the demand in each market to be as follows:

Government clinics:

Private clinics:

The price is RM per bottle (round up to 2 decimal points only) and the quantity is in bottles.

The total cost of producing the medicine is

and

1. If the company practices third-degree price discrimination, determine the price and quantity it should charge and supply in each market segment. [8 marks]
2. Find the price elasticity of demand at the equilibrium price of each market and draw your conclusion (round up to 1 decimal point only). [6 marks]
3. Determine the price that the firm should charge if the company is practising uniform pricing. [4 marks]
4. Should the firm practise price discrimination? Justify your answer.

[7 marks]