Bayer is selling aspirin in both north america and europe


Bayer is selling aspirin in both North America and Europe. The elasticity of demand in Europe is -1.5, but -1.4 in North America. It costs Bayer $2 to make a bottle of aspirin. Bayer sells 20 million bottles of aspirin quarterly in Europe, and 15 million bottles in North America. The demand on both continents can be expressed as a linear function. Recover the individual demand in both regions, and calculate the price Bayer would charge if it was forced to set a uniform price. Who would bene t and who would hurt from charging uniform price? Explain your answers and show all of your work for full credit.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Bayer is selling aspirin in both north america and europe
Reference No:- TGS01096943

Expected delivery within 24 Hours