d) Some gyms maybe too far for Valentina. In particular we assume that there are only two gyms that can serve each londoner ( for example because the others are too far from where people live) and gyms are aware of that. How would this affect the strategies of these two gyms? (To answer this question, assumme that people do not move or travel to access a particular gym)

Section B Valentina, your lecturer for ECON6006, lives in London. When she first moved there, she was looking for a gym to join. (a) She was initially told that the community gym in the neighbour- hood offers discounts to people living in the area. Why do you think is that? Is there anything you studied during the lectures that can explain this decision? (b) After some considerations, Valentina decided to join another gym, which turned out to be more expensive and farther from where she lives. Can Valentina be considered a rational con- sumer? What could have motivated Valentina's decision? [1 (c) Valentina is interested in joining the gym for 12 months and she was offered three contracts: i. $60 per month ii. L40 for the first three months, $50 for other three months, $70 for the other 6 months