1. Your lawn care company serves the Twin Cities metro area and Mankato. Your marginal cost of caring for a lawn for the summer is $400 regardless of market area. However, you find that your customers have a different price elasticity of demand for your lawn services. The price elasticity of demand in Mankato is 3.1 whereas the price elasticity of demand for the Twin Cities metro area is 4.5 (all in absolute value terms). Assume for simplicity that all customers have the same size lawn. To maximize profit,

1. What price do you charge Mankato customers for lawn care for the summer?Explain and show your work.
2. What price do you charge Twin Cities metro area customers for lawn care for the summer? Explain and show your work.