Exhibit 14-4

question 38

Multiple Choice

Exhibit 14-4.Consider the following sample regression equation ,where y is the supply for Product A (in 1000s) and x is the price of Product A (in $) . Refer to Exhibit 14-4.If the price of Product A increases by $3,then we expect the supply for Product A to

• A)increase by 30.
• B)decrease by 30.
• C)increase by 30,000.
• D)decrease by 30,000.

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Definitions:

Dominant Strategy

A dominant strategy is a course of action that yields the best payoff for a player regardless of what the other players in the game decide to do.

Payoff Matrix

A table that represents the potential outcomes or payoffs in a strategic decision-making situation, often used in game theory to illustrate the consequences of different actions.

Dominant Strategy

A strategy in game theory that is best for a player to follow regardless of what strategies other players choose.

Game Theory

A branch of mathematics and economics that analyzes strategies in competitive situations where the outcome depends on the actions of all participants.