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(a) Suppose Country A realizes they actually have the chance to either set their tariffs first (and let the other country know about them), or

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(a) Suppose Country A realizes they actually have the chance to either set their tariffs first (and let the other country know about them), or do the exact opposite: wait until the other country sets the level and decide afterwards. What will Country A prefer to do? Why? (b) Suppose Country A does their preferred move (the one you found in the previous item). Find the equilibrium path of this game. Note that you will have to solve an optimization problem at some point; you can solve it taking the derivative or you can go to Wolfram Alpha, write the problem you are trying to solve (you should type max x, of course instead of a you write the function you are trying to optimize, using t as the decision variable), and press "="

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