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Suppose that the monopolist sells the two goods separately (i.e., follows the separate pricing strategy) at price p1 and p2 such that (r a 1
Suppose that the monopolist sells the two goods separately (i.e., follows the separate pricing strategy) at price p1 and p2 such that (r a 1 < p1 < rc 1 ) and (r c 2 < p2 < rb 2 ) . Illustrate these two prices on the reservation price graph(i.e., illustrate all the prices for good 1 that equal p1 and all the reservation prices for good 2 that equal p2). Illustrate which consumers buy which goods at these two prices.
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