Consider the market for refrigerators and the market for kitchen appliances (including refrigerators).

a) Is the Herfindahl-Hirschman Index higher for the kitchen appliances or refrigerators? Explain.

b) Assume that the price elasticity of demand for refrigerators is -1.2. Interpret this number.

c)Based on the information in b), what can you say about the Lerner index for Liebherr refrigerators (a specific brand of refrigerators)? Explain.

This is a fictitious situation, all other data is missing