If the game is played for 10 years, the Nash equilibrium will be

An example of how trade diversion results in a suboptimal situation is auto parts trade between Mexico and the United States. After NAFTA:

a. Mexico decreased its sales of auto parts to the United States. b. the United States purchased more auto parts from Mexico due to the elimination of tariffs and reduced purchases from East Asia, which was the lowest-cost producer. c. the United States brought a complaint against Mexico for low quality auto parts. d. the United States purchased fewer auto parts from Mexico due to the elimination of tariffs and increased purchases from East Asia, which was the lowest-cost producer.

An excess supply of rice in a competitive market would indicate that

a. the problem of scarcity has been solved in that market b. buyers want to purchase more rice at the current price than the sellers want to sell c. the market will not be able to approach equilibrium d. the entire supply curve must shift to the left in order to attain equilibrium e. the current price exceeds the equilibrium price