Determine whether the given scenarios describe savings or investment. If the scenario describes investment, determine which type of investment is described. Place each scenario in the appropriate category. Savings Business investment Inventory investment Housing investment Answer Bank Spacex spends $5 million on writing and testing new code to improve its rocket stability. In 2017, 1.2 million new homes were built in the United States. Stock market indices experience major increases after the Federal Reserve announces that its interest rate targets will remain unchanged. Amazon purchases $100 million worth of products from a Chinese manufacturer to add to its warehouse inventory.

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?