Winona’s government advises its citizens to save as much money as possible. What will most likely be the result of this policy?

Consider the following entry game: Here, firm B is an existing firm in the market, and firm A is a potential entrant. Firm A must decide whether to enter the market (play "enter") or stay out of the market (play "not enter"). If firm A decides to enter the market, firm B must decide whether to engage in a price war (play "hard"), or not (play "soft"). By playing "hard," firm B ensures that firm A makes a loss of $1 million, but firm B only makes $1 million in profits. On the other hand, if firm B plays "soft,", the new entrant takes half of the market, and each firm earns profits of $5 million. If firm A stays out, it earns zero while firm B earns $10 million. Which of the following are Nash equilibrium strategies?

A. (not enter, hard) and (enter, soft) B. (enter, hard) and (not enter, soft) C. (enter, soft) and (not enter, soft) D. (enter, hard) and (not enter, hard)

Suppose a 10% increase in the price of steak reduces the consumption of steak by 30%. Such a price rise will induce households to spend

A. more of their income on steak. B. the same amount on steak as before. C. less of their income on steak. D. more on products that are complementary with steak.