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Question 15 Knowing that Mom will be going to a business meeting, Dad has bought tickets to a Badminton game (Malaysian top shuttler Lee Zee Jia will be playing) for himself and the two non-identical twins'. Dad likes badminton, as do the twins. Unfortunately, the twins also like to fight with each other. Dad has warned the twins: "Don't fight. If you do, we just won't go to the badminton game." Dad can't go to the badminton game without both twins because their Mom won't be home, and on such short notice he won't be able to find a sitter. You are interested in the following questions about the behavior of Dad and the twins: will the twins fight? and, will Dad takes the twins to the badminton game? This situation can be model as The Dad and twins Game, in which Dad and twins each have preferences about the four possible outcomes. Twins Strategy Dad strategy Fight Don't Fight Go Game 2,3 outcome 3,2 outcome A B Don't go to 0, 1 outcome 1,0 outcome game C D Table - The Dad and twins Game In this game, the players are Dad and twins and the equilibrium is the outcome A, because the twins recognize that twin's threat is not credible. Is there some way for Dad to make his threat credible and thereby get the twins to behave? Question 16 Assume the Malaysian government provides a RM20 per hour subsidy for families with an employed single mother with a wage of RM150 per hour and who purchases child care for RM30 per hour. Consider a single mother with a pre-school age child who is currently employed. How would this subsidy affect the number of hours that she chooses to wor assuming she can vary them