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Suppose A can somehow change the game in problem 5.1 to a new one in which his payoff from Up is reduced by 2, producing the following payoff matrix.
a. Find the Nash equilibrium or equilibria.
b. Which player, if any, has a dominant strategy?
c. Does A benefit from changing the game by reducing his or her payoff in this way?
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Explain the adjustment to the new equilibrium price from an increase in supply.
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