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please, provide an explanation on the answers given for each question. see image attached. 8. A price-discriminating monopolist sells in two separate markets such that

please, provide an explanation on the answers given for each question. see image attached.

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8. A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges p1 = $5 in one market and p2 = $10 in the other market. At these prices, the price elasticity in the rst market is 1.40 and the price elasticity in the second market is 0.10. Which of the following actions is sure to raise the monopolist's prots? a. Lower 19;. h. Raise m. c. Raise p1 and lower p2. d. Raise both p1 and p2. e. Raise p2 and lower p1. ANS: B DIF: 2 9. A pricediscriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges p1 = $2 in one market and p2 = $8 in the other market. At these prices, the price elasticity in the rst market is 2.20 and the price elasticity in the second market is 4110. Which of the following actions is sure to raise the monopolist's prots? Lower p2. Raise p2. Raise both p1 and p2. Raise p1 and lower p2. Raise p2 and lower p1. ANS: B DIF: 2 .09.qu

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