Metro Cable is the exclusive provider of high speed cable internet to a city. The company is free to charge any price it wants, and providing internet has the same marginal cost to all households in the city (i.e. a constant marginal cost).

As a whole, the price elasticity of demand in the city is Ed = 3.5. However, on further inspection, Metro Cable discovers the demand on the West Side of town is less elastic than on the East Side of town.

Assume there is no additional fixed cost to providing service to each side of townthere is only a single fixed cost when providing cable internet city-wide. What should Metro Cable do when setting prices?

Group of answer choices

Only sell cable internet to those on the West Side of town.

More information is needed.

Set the same price to all customers across the city.

Charge a higher price on the West Side than the East Side.

Charge a higher price on the East Side than the West Side.