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how to find Question 4. (10 points) Consider a homogeneous labor market for physicians, which can distinguish between rich and poor patients. The demand function

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Question 4. (10 points) Consider a homogeneous labor market for physicians, which can distinguish between rich and poor patients. The demand function for patients are given by q1 = 60 5*p1 and q2 = 50 2.5*p2. The total cost lnction of treating patients is c = q] + 2*q2. a) Determine which demand function describes the demand of rich, and which one describes the demand of poor patients. (hint: you must draw a graph to answer to this question). (3 points) b) Calculate an optimal price and prot, if there is no price discrimination. (2 points) c) Calculate an optimal price and prot, if there is price discrimination. (2 points) d) Does your answer support the conclusions from the paper discussed during the class? (3 points)

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