Author Question: Jim recently graduated from college. His income increased dramatically;from5000 a year to 60,000 a ... (Read 35 times)

arivle123 · **on:** Jul 1, 2018

Jim recently graduated from college. His income increased dramatically;from5000 a year to 60,000 a year. Jim decides that instead of using the bus, he would buy a car. This implies that
a. The car is a normal goods for Jim
b. The car is an inferior goods for Jim
c. The bus and the car are complementary for Jim
d. Need information on the price of cars

Question 2

Is this Nash equilibrium efficient?
a. Yes, because the sum of payoffs is highest
b. No, because both the parties can do better
c. No, because both the parties are maximizing their profits
d. All of the above