In a Nash Equilibrium,which of the Following Constrains an Individual

question 15

Multiple Choice

In a Nash equilibrium,which of the following constrains an individual when he optimizes?

• A) The market prices.
• B) His tastes.
• C) The actions of other individuals.
• D) Nothing-the individual has no constraints in a Nash equilibrium.

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Definitions:

Inelastic

A description of a situation where the quantity demanded or supplied changes by a smaller percentage than the changes in price.

Demand Sensitive

Reacting to changes in consumer demand, often affecting pricing and production decisions.

Long-Run Demand

The overall demand for a product or service over an extended period, considering changes in market conditions and preferences.

Short-Run Demand

The demand for goods and services in the immediate future, influenced by current prices and income levels.