Consider a game of Mutually Assured Destruction played by two superpowers, Country 1 and Country 2. Country 2 has precipitated an international incident. Country 1 can either ignore the incident or escalate the crisis. If it ignores the incident the game ends and both countries receive a payoff of 0. It if escalates, then Country 2 can either escalate further or back down. If it backs down, then the game ends, Country 1 receives a payoff of 2, and Country 2 receives a payoff of -2. If Country 2 escalates further then 1 and 2 play a game where they move simultaneously. Each has two strategies in this subgame: Back Down or Doomsday. The payoffs in the subgame are as follows: Country 2 Doomsday Back DownCountry 1 Doomsday -100, -100 -100, -100 Back Down -100, -100 -1, -1Find all subgame perfect Nash equilibria of this game.

answer(b) gdp is not affected by

scott's production of the jewelry box;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.