Somewhere far away there exist two villages Applecastle (A) and Orangevillage (B). Each village has its grocery store which sells a particular brand. Suppose that initially connection are bad so that all inhabitants of A do their shopping in A and all inhabitants of B do their shopping in B. Some villagers propose a better connection between A and B.

a. Do the grocery owners support this connection? Is it possible that both, one or none of the owners support the project? Explain.

b. What is the likely position the two city councils will take?

c. How may the opinion of the city council be different if there is a local sales tax?