Choose the correct statement: a. changes in relative prices lead consumers to change the items they buy, and the cpi reflects this substitution. b.the outlet substitution bias injects an upward bias into the cpi. c.when the quality of a good improves over time, the cpi does not include the portion of the price rise attributable to the higher quality in its calculation. d.the cpi calculation assumes that everyone shops at discount stores and no one shops at convenience stores.

Why should organizations be allowed to promote offensive, violent, sexual, or unhealthy products that can be legally sold and purchased?

Amanda works as an industrial designer

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?