11. Before 1993 and the installation of the Mid-Levels escalators, walk- ing up the hill was much more painful than walking down. This is translated by the following assumptions: τ1(x) = tx and τ2(1 − x) = (t + τ )(1 − x) with t, τ > 0. Based on your reasoning about the prices charged by the two shops, which of the following statement is TRUE? A. The equilibrium quantity of Won-Ton will be smaller than that of Too-Chow.
B. The equilibrium price of Won-Ton will be higher than that of Too- Chow.
C. The equilibrium profit of Won-ton will be smaller than that of Too- Chow.
D. None of the above.
