​Use the Following Case from Question

question 60

Multiple Choice

​Use the following case from question
Two siblings,Sarah and Tom are playing a simultaneous hit and tell game.Sarah can hit Tom or not and Tom can tattle on Sarah or not.Relative to no hitting and no tattling,if Sarah hits Tom,and he tattles they both experience a loss of 10.Not telling,gets Tom a bruise,a loss of 5 but Sarah gains 5.If he tattles untruthfully,he gets a gain of 5 and Sarah loses 5.If they get along,no one gets anything
-​What would be the Nash equilibrium of this simultaneous game?

• A)​Hit,Tell
• B)Not hit,Tell
• C)Hit,Not tell
• D)​Both B&C

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Definitions:

Inferior Good

An inferior good is a type of good whose demand decreases when consumer income rises, in contrast to normal goods, whose demand increases with rising incomes.

Shoes

Footwear items designed to protect and comfort the human foot while offering various styles and functions.

Income Elasticity

Measures how the quantity demanded of a good changes in response to a change in consumers' income.

Normal Good

A type of good for which demand increases as the income of consumers increases, and decreases when consumer income decreases.