Suppose a Restaurant Has Two Types of Customers,group a and Group

question 51

Multiple Choice

Suppose a restaurant has two types of customers,group A and group B.Group A customers have a price elasticity of demand equal to 6,while group B customers have a price elasticity of demand equal to 2.If the firm seeks to maximize profits by discriminating prices,and it charges group B customers $40 per meal,what price should it charge group A customers?

• A)$20
• B)$22
• C)$24
• D)$26

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