Task3

Task 3 Two Chinese noodle takeaways, Ng's Noodles and Chen's Cookhouse, both sell an identical noodle soup and are located in different areas of the city. But the price of noodle soup at Ng's is $5.50, and the price of noodle soup at Chen's is $5. Dan says: 'It is easy to explain this price difference. It must be occurring because there are no other noodle takeaways nearby to Ng's, whereas Chen has several competing noodle takeaways nearby\". But Sue disagrees. She says: 'The reason for the price difference must be that Ng's is located in an area where the population has higher average income than in the area where Chen's takeaway is located'. Is Dan correct or is Sue correct? Explain your reasoning