Game theory assumes that players in the game act

Game theory assumes that players in the game act
 a. Rationally
 b. Optimally
 c. In their own self-interest
  d. All the above

QUESTION 2

As price increases, demand typically
 a. becomes more elastic
 b. becomes less elastic
 c. does not change
 d. elasticity does not change

QUESTION 3

First-mover advantage is a characteristic of
 a. A simultaneous-move game
  b. A dominant strategy
 c. A sequential-move game
 d. All of the above

QUESTION 4

If potatoes are inferior goods, which of the following will increase the demand for potatoes?
 a. Increase in the price of a complement
  b. Decrease in income
 c. Decrease in the price of a substitute
  d. Increase in income

QUESTION 5

Nash equilibrium is:
 a. where one player maximizes his payoff and the other doesn't
 b. when each player's strategy is the best response to the other player's strategy
  c. where the outcome is always efficient
 d. difficult to determine

QUESTION 6

If cars are normal goods, a fall in income will
 a. Increase the demand for cars
 b. Decrease the demand for cars
 c. Have no effect on the demand for cars
  d. None of the above