Consider the Bertrand game involving two firms producing differentiated products. Firms have no production cost and their demand functions are given by: 9 = (102+8) P. +b.P2, q2 =(102+8) P2 +b.P1, where is the last digit of your student ID number. For example, if your student ID number is SB09394, then g = 4. a) Solve for the Nash equilibrium price levels of both firms. (6 points) b) Represent the equilibrium prices on the best response diagram wherein the price of Firm 2 is measured by the Y axis. Show how an increase in b would change the equilibrium outcome. (9 points) Consider the Bertrand game involving two firms producing differentiated products. Firms have no production cost and their demand functions are given by: 9 = (102+8) P. +b.P2, q2 =(102+8) P2 +b.P1, where is the last digit of your student ID number. For example, if your student ID number is SB09394, then g = 4. a) Solve for the Nash equilibrium price levels of both firms. (6 points) b) Represent the equilibrium prices on the best response diagram wherein the price of Firm 2 is measured by the Y axis. Show how an increase in b would change the equilibrium outcome. (9 points)