What is the payoff for each firm in this one-shot game?

When would demand for a good be more inelastic?

a) when there are fewer available substitutes b) when the time period is considered longer c) when the good is considered more of a luxury good d) when the market is more narrowly defined

Refer to the scenario above. If the players have to pay a fairness penalty of $7,000, ________

A) this game will no longer have a Nash equilibrium B) this game will have two Nash equilibria C) Nash equilibrium will occur when Mathew chooses bad and Peter chooses good D) Nash equilibrium will occur when Mathew chooses good and Peter chooses bad