A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges $6 in one market and $8 in the other market. At these prices, the price elasticity in the first market is -2.40 and the price elasticity in the second market is -0.70. Which of the following actions is sure to raise the monopolist's profits? A) Raise both p₁ and p₂. B) Raise p₁ and lower p₂. C) Raise p₂. D) Lower p₂. E) Raise p₂and lower p₁.

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The Answer of A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges $6 in one market and $8 in the other market. At these prices, the price elasticity in the first market is -2.40 and the price elasticity in the second market is -0.70. Which of the following actions is sure to raise the monopolist's profits? A) Raise both p₁ and p₂. B) Raise p₁ and lower p₂. C) Raise p₂. D) Lower p₂. E) Raise p₂and lower p₁.

A Price-Discriminating Monopolist Sells in Two Separate Markets Such That