The Kobe Ball Co. has hired you as their pricing analyst. The Kobe Ball company sells footballs in India and the United States. Your first task is to estimate the price elasticity of demand for two different markets (the United States and India). You find that in the Indian market, the price elasticity of demand is -5.0. The United States market has an elasticity of - 1.5. Show all work and calculations.

a. Qualitatively explain the significance of your findings. Include in your analysis what you should generally do to the price(s) based on the data .

b. What might explain the difference in elasticities between the two markets?

c. What market should have the larger markup and why?

d. You have data that shows the marginal cost in India is 5 dollars. Are you able to find the optimal price for the India market? If so, what is the optimal price? Show all your work.

e. You have data that shows the marginal cost in the United States is 10 dollars. Are you able to find the optimal price for the United States market? If so, what is the optimal price? Show all your work.