Final answer:
Blood vessels and nerves are located within the dermis layer of the skin, which is directly beneath the epidermis and composed of connective tissue.
Step-by-step explanation:
Blood vessels and nerves are typically located within the dermis layer of the skin. The dermis is the thicker layer that lies directly beneath the outermost layer, the epidermis. It is composed of tough connective tissue, and it supports several important structures including blood vessels, nerve endings, hair follicles, and glands (such as sweat and sebaceous glands). Despite hair follicles originating in the dermis, they are associated with sebaceous glands that produce sebum, crucial for hair waterproofing. The dermis is significantly involved in sensory perception as it contains many nerve endings that respond to touch, pressure, heat, and pain.