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(Solved): The Price Of A Car Is About 10% Higher If You Buy It In NYC Than If You Bought It In Dallas. A. Why ...

The price of a car is about 10% higher if you buy it in NYC than if you bought it in Dallas.

a. Why is it surprising that there would be a price difference?

b. How might you explain why the price difference doesn't go away?

Expert Answer

a) it can actually be mentioned that if the cars are manufactured in Dallas and the facilities of service are available in Dallas then
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