The Table Below Shows the Payoffs to the Running of Negative

question 26

Multiple Choice

The table below shows the payoffs to the running of negative and positive political ads by two candidates.The payoffs are the percentage increase or decrease in the number of voters willing to vote for the candidate as a result of the campaign styles. $\begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Republican Candidate }\\\text { Democratic Candidate }\begin{array}{|l|l|l|}\hline & \text { Positive Campaign } & \text { Negative Campaign } \\\hline {\text { Positive Campaign }} & \begin{array}{l}\text { Democrat } 0 \% \\\text { Republican: } 0 \%\end{array} & \begin{array}{l}\text { Democrat:-3\% } \\\text { Republican: }+3 \%\end{array} \\\hline {\text { Negative Campaign }} & \begin{array}{l}\text { Democrat: }+5 \% \\\text { Republican: }-5 \%\end{array} & \begin{array}{l}\text { Democrat }-2 \% \\\text { Republican: }-2 \%\end{array} \\\hline\end{array}\end{array}$
Refer to the figure above.Given the payoff matrix,running a negative campaign is __________ for __________.

• A) a dominated strategy;the Democratic candidate
• B) a dominated strategy;the Republican candidate
• C) a dominant strategy;the Democratic candidate
• D) neither a dominant nor dominated strategy;the Republican candidate

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Definitions:

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product.

Demand Decrease

A situation where the quantity of a product or service desired by buyers decreases, usually due to changes in consumer preferences, incomes, or prices of related goods.

Demand Equation

A mathematical representation expressing the relationship between the quantity of a good demanded and its price, along with other factors affecting demand.

Supply Equation

A mathematical expression that represents the relationship between the quantity of a good that producers are willing to sell and factors that affect this quantity like the price of the good.