please add commentary if possible. Thank you for your help!

3.- With the same data as in problem 2, suppose that N=2, and prices are now unregulated, so that each vendor chooses its price. Also, assume that the first vendor is located at point 0, and the second at point b>1/2. Finally, consumers pay a transportation cost of t=2 per mile to move on the beach. (a) For each pair of prices p1 and p2, obtain the demand for each of the vendors. (b) Given this, and assuming zero production costs for both vendors, obtain the equilibrium prices for these vendors. How do these prices depend on the degree of differentiation (i.e., distance between vendors, b) of the products