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Need solution There are two types of consumers: 21 = 500 - 2P + 21, where I is income of the group. Currently P1 =

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There are two types of consumers: 21 = 500 - 2P + 21, where I is income of the group. Currently P1 = 200 Q2 = 1000 - P + 1 P2 = 500 11 = 50 12 = 100 1) Find the current price elasticity of demand in each group 2) Find the income elasticity of demand in each group 3) Should you increase or decrease the price in each group if you want to increase the revenue? 4) Now assume that you can not price discriminate (both types of consumers have to pay the same price). Find the price that maximizes the total revenue in that case

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