If Toby buys two goods and the prices of both goods increase by 50
A) the budget constraint will be unchanged.
B) the slope of the budget constraint stay the same.
C) the slope of the budget constraint will decrease.
D) the budget constraint will shift outward in a parallel fashion.
Question 2
Not all games with two or more Nash equilibria can be solved with pre-play communication because
A) cheap talk may be illegal under anti-trust laws.
B) if there's an incentive for one or more players to lie, then cheap talk lacks credibility.
C) pareto criterion might not be defined.
D) Both A and B
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