If a Firm Supplies Separable Markets with Price Elasticities $\eta$ ₁ = -3 And

question 26

Multiple Choice

If a firm supplies separable markets with price elasticities $\eta$ ₁ = -3 and $\eta$ ₂ = -2,it should set prices P₁ and P₂ so that:

• A) P₁ = P₂.
• B) 3P₁ = 2P₂.
• C) 2P₁ = 3P₂.
• D) 2/3P₁ = 1/2P₂.
• E) 2P₁ = 2/3P₂.