Question

A wheat manufacturing company is practicing price discrimination in two cities, namely Bangalore and Kolkata. The...

A wheat manufacturing company is practicing price discrimination in two cities, namely Bangalore and Kolkata. The price and the price elasticities of demand in the two markets are given below:

Bangalore   Kolkata
Price: ₹42   Price: ₹25
|??| = 2   |??| = 4

1a. Are the prices charged in the two markets optimal? (Answer in YES/NO only).
Word limit:1
1b. Use appropriate concepts to support your claim in Question 1(a).
Word limit:25

1c. The marketing research wing of the company found that the optimal price should be
₹25. Given this, at what price should the company sell the product in Bangalore?

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