Suppose a monopolist finds that the market contains two groups of consumers. The demand function of the first group is qA = 90 - p and the demand function of the other group is qB = 65 - 0.5p. The marginal cost of production is $30.

a) What prices should the monopolist charge if he wants to practice multimarket price discrimination?

b) What is the connection between the price elasticity of demand and multimarket price discrimination?

c) Discuss one real-world example of a firm that practices multimarket price discrimination.