1. Continuing the analysis from above, what could the producer of Brand 1 do to persuade customers to switch away from Brand 2 and to Brand 1?

2. Apply the above analysis to a consumer choosing between 3 cars on the basis of power (measured by engine size) and comfort. Car A has a lot of powerbut lacks comfort, whereas car B is very comfortable but has a small engine. Car C is relatively comfortable but is also quite powerful. Plot the characteristics of the two attributes in each of the brands and then draw on indifference curves to determine the optimum consumption point for a consumer.

3. What do you think are some of the likely limitations of characteristics analysis?