Exercise 2 (6 marks) Little Italy has 100 consumers all of whom buy either one pizza or nothing. Each consumer has a reservation price of $15. That is, each consumer is willing to pay at most $15 for a pizza. There are two pizza stores, A and B, located next to each other. It costs $7 to make a pizza. Let P and pp denote the price charged by stores A and 8 respectively. For simplicity, assume pE {12,15}. for both { = 4, B. Hereafter we ignore the dollar sign. Thus, prices can take just one of the two values - 12 or 15. If p;