In New York City, many people buy their Christmas trees from sidewalk vendors. An article about these vendors in the New York Times has the headline “How Much for That Tree? $35 in Harlem, or $135 in SoHo.” Harlem is a lower-income neighborhood, and SoHo is a higher-income neighborhood.

a. Are the sidewalk Christmas tree vendors in New York City practicing price discrimination? Briefly explain. 

b. The article also notes that the Christmas tree vendors must pay rent to the owners of the buildings that front the sidewalks. According to the article, “The most sought-after spots in high-end neighborhoods have created notorious price wars among vendors plotting to outbid one another. The cutthroat competition has increased rents . . . by as much as 500 percent in eight years.” Does this additional information affect your answer to part (a)? Briefly explain.