(1) Basing on the economic concepts/theories that you have learnt in the course, with appropriate assumptions, elaborate on the consumer group that will most likely buy the pass.?(Word limit: 150)??????(8%)(2) Correspondingly, with explanations draw the individual demand curve of this type of consumers.?????????(8%)

In 2018, the Kowloon Motor Bus Co. (KMB) in Hong Kong introduced the KMB Monthly Pass, which has enjoyed great popularity. The price is HK$780. Each Pass has a 30-day validity period, and the limit for using the pass to travel on regular KMB routes and Route B1 is ten trips per day and two trips per day respectively. With the exception of KMB routes K12, K14, K17 and K18, the offer covers all KMB and Long Win Bus (LWB) routes, including over 400 KMB routes (jointly-operated routes operated by KMB count) and over 30 routes operated by LWB. (1) Basing on the economic concepts/theories that you have iearnt in the course, with appropriate assumptions, elaborate on the consumer group that will most likely buy the pass. (Word iimit: 1'50) (8%) (2) Correspondingly, with explanations draw the individual demand curve of this type of consumers. ( 8%) Some of the cross-harbour routes are jointly-operated by KMB and CitybusiNWFB (New World First Bus), i.e. they do have an agreed upon bus schedule served by the two companies on the same route. Since the latter does not offer any monthly pass or equivalence, (3) What would be the most likely impact(s) of the KMB pass on the markets of the two companies on the same route? Illustrate with the help of the diagrams in the domain of demand and supply. (3%) Though the planned schedules for both companies on the same route are easily obtainable by consumers via checking their mobile app by the companies for the coming service- provider and the arrival time, it appears some buses are not on schedule (not displayed on the app) and come in- between, especially during peak hours. (4) With such scenario, the following game between the two companies on the same route has been constructed and the payoff matrix (profit per week in thousand dollars) is as follows: I_ mm 11.5 Scheduiedfs) More Frequent (M) m I_-_ \"Payoff: KMB. CITYBUSINWFB a. Any dominant strategy for KMB and CITYBUSiNWFB? Is there a Nash Equilibrium? (5%) b. Explain if they encounter a prisoner's dilemma. (6%) 0. Construct the game with Match Strategy and explain the reSUItF