3. Consider the following: 2 firms who each can sell up to 2 units. Market supply and demand curves are show below. (This is a really hard one unless you have taken game theory call or IO class. But try it anyway - it's a good exercise!) $8 $7 Demand Supply $6 $0 0 2 3 4 5 Quantity Explain that the competitive equilibrium price of $0 is not stable; i.e. does not constitute a Nash equilibrium. That is, explain how a unilateral price increase by either seller will raise earnings. Would this be stable