Question: Fred and Wilma have noticed that prices tend to be higher in stores that are located in high-rent districts. Fred thinks that the high rents

Fred and Wilma have noticed that prices tend to be higher in stores that are located in high-rent districts. Fred thinks that the high rents cause the high prices, whereas Wilma thinks that the high prices cause the high rents. Under what circumstances is Fred correct? Under what circumstances is Wilma correct?

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