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A local retailer has decided to carry a well-known brand of shampoo and is considering the way he prices the product. Currently, it is being sold at $6.00 per bottle. Also the marketing department tells him that the quarterly demand by an average man is:

Qd = 3 - 0.25P
and the quarterly demand by an average woman is:
Qd = 4 - 0.5P
Where P represents the price of the shampoo per bottle

a.Find the price elasticity of demand for each group customers at the current price and quantity.

Is the retailer maximizing the revenue he collects from his shampoo sales by charging $6.00 for each bottle? Explain why? (Hint: Assume that it is possible for the retailer to charge different prices to the two group of customers)
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The expert examines the supply and demand in macroeconomics. A complete, neat and step-by-step solution is provided in the attached file.

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