Assume that a small resort town has two grocery stores. Store $1$ is in the middle of Main Street, and store $2$ is on a cross street that is several blocks away from Main Street. Tourists stay in hotels and condos along Main Street.

A$.$ Which grocery store is likely to have higher consumer search costs, especially for tourists?

B$.$ Given our discussion of advertising and search costs, which store do you think is more likely to charge lower prices and to spend more on advertising? Explain