Question) You are the seller of chocolate ice-cream, the two closest ice-cream competitors to you are hazelnut ice-cream and peanuts ice-cream respectively

Question) You are the seller of chocolate ice-cream, the two closest ice-cream competitors to you are hazelnut ice-cream and peanuts ice-cream respectively. Some of the consumers have the same net surplus from consuming peanuts ice-cream and chocolate ice-cream. Your closest substitute is chocolate cake. Use the Salop's model and graphically illustrate the impacts of the following events to your market share:

a) If the price of chocolate cake decreases

b) If the price of peanuts ice-cream increases