A Careful Analysis of Demand for Bubbles in Strasburg, North

Multiple Choice

A careful analysis of demand for Bubbles in Strasburg, North Dakota, reveals a strange segmentation in the market.(Recall Bubbles is the beverage which produces an unexplained craving for Lawrence Welk's music.It is produced by the process Q = min{R/3, W }, where R is the number of pulverized Lawrence Welk records and W is gallons of North Dakota well water.P_R = $1, P_W = $5.) If demand for Bubbles by senior citizens is described by Q₀ = 500P^-3/2while demand by those under 65 years old is Q_y=50P^-5, how should Bubbles be priced to maximize profits?

A) $24 for senior citizens and $10 for those younger
B) $12 for senior citizens and $40 for those younger
C) $8 for senior citizens and $26.67 for those younger
D) $11.56 for all citizens of Strasburg
E) $45 for senior citizens and $18.75 for those younger