1. Find the new car prices for two popular cars: Honda Accord and the Ford Fusion. What are their prices?Are the two cars closely priced?
2. Do you think physically similar goods are close substitutes when they are more closely priced than when they are less closely priced?Explain your answer.
3. Do you think the issue of closeness in price is irrelevant to the degree of substitution? Explain your answer.
4. Do you think the cross-price elasticity of demand between the Accord and Fusion is positive or negative? Explain your