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Suppose a monopolist faces two groups of consumers. Group 1 has a demand given by P 1 =50-2Q 1 and MR 1 =50-4Q 1 .

Suppose a monopolist faces two groups of consumers. Group 1 has a demand given by P1=50-2Q1and MR1=50-4Q1. Group 2 has a demand given by P2=40-Q2and MR2=40-2Q2. The monopolist faces MC=AVC=ATC=$10 regardless of which group he supplies to. We can infer from the demand equations that Group ___ is the inelastic group because the demand is ____ than that of the other group.

A)1; flatter

B)1; steeper

C)2; steeper

D)2; flatter

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