Sardinian beekeepers affiliated with Terrantiga cooperative produce and sell strawberry tree (corbezzolo) honey one of the very best and most rare honeys in the world. Terrantiga cooperative is a strong supporter of third-degree price discrimination with which different prices are applied to different groups of customers based on observable characteristics. In particular, Terrantiga charges price PA to Italian customers making annual donations to projects aimed at preserving Italian artistic heritage, and price pg to Italian customers holding. environmental-friendly cars. The inverse demand function for each market segment is as follows: for customers supporting artistic heritage PA(9A)=29- 1 10 9A 9E 1 PE(96)=20- for customers with environmental friendly cars 20 with q, and qe being the quantities of honey (in kilos) demanded by each type of customers, and prices PA and pg being measured in euros. Terrantiga cooperative's total cost function is as follows: TC (94 +9)=2(9A + 9B) + (9A + 9B) 40 Derive analytically showing your calculations: 1. the levels of sales q and q that maximize Terrrantiga's profits; 2. the corresponding profit-maximizing prices p and pi 3. the price elasticity of demand, e, and e, for each market segment; 4. the total maximal profit II when Terrantiga cooperative can apply third-degree price discrimination. 5. Who pays the highest price and why? Recently, Sardinian citizens voted for the new regional government. The newly elected regional government bans price discrimination in all markets. Let Q=qA+qe be the quantity of honey produced by Terrantiga cooperative. Its total cost function is the same as before, that is, TC(Q)=2Q+Q Derive analytically showing your calculations: 40