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GoPro holds a monopoly in two countries where it sells video cameras, USA and Canada. The demand functions for the two regions are,
Q(USA)=105-P(USA)
Q(CANADA)=42.5-.5P(CANADA)
GoPro has a unique manufacturing process where it can produce each video camera for $20. Assume there are very strict laws that prevent the resale of the product across borders.
A. What is the price and quantity produced in both markets?
B. Show that the relationship from part A also holds when evaluated with elasticities.
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