3. (11 marks) Wednesday Cosmetic has recently developed a new special cleansing cream. She has a constant marginal cost of production at $60. Suppose Wednesday Cosmetic practices price discrimination on this new cream by selling it to men and women in two different packages, and the estimated price elasticity of demand for men and women are -2.5 and -4.0 respectively. Calculate the prices Wednesday Cosmetic should charge on men and women respectively. Show your calculations. Show your results on well-labelled diagrams as well.
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