7. 1

p [0, 1] and player 2 chooses q [0, 1]. The player's payoffffs are given by

u1(p, q) = p(7q 3) + 4 3q and u2(q, p) = q(7p 4) + 5 4p.

(a) Find and graph each player's best-response function.

(b) Find all pure-strategy Nash equilibria