* The following table shows how the payoffs to the Singhs and Kapurs depend on their choice of cars. The first entry in each box is the payoff to the Singhs.??* ?Problem 4A:?Use the dot and circle method to determine the Singhs and Kapurs' best responses one to another: i. * If Singhs knows for sure that Kapurs will purchase a Large, gas guzzler car, then the Singhs' best response is to purchase what type of car? ?a Large, gas guzzler car B. Small, environment-friendly car ii. If Singhs knows for sure that Kapurs will purchase a Small, environment-friendly car, then the Singhs' best response is to purchase what type of car? ?a Large, gas guzzler car B. Small, environment-friendly car iii. If Kapurs knows for sure that Singhs will purchase a Large, gas guzzler car, then the Kapurs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car iv.If Kapurs knows for sure that Singhs will purchase a Small, environment-friendly car, then the Kapurs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car* ??* Problem 4B: Do the Singhs or the Kapurs have a dominant strategy?? a. Neither the Singhs or the Kapurs have a dominant strategy b. The Kapurs have a dominant strategy c. Both the Singhs and the Kapurs have a dominant strategy d. The Singhs have a dominant strategy ?* Problem 4C: Is there a dominant strategy equilibrium???Yes ?No ??* It would be bad for the environment if everyone drove large, gas guzzler cars. Therefore, the government is considering policies that might induce people to choose to purchase small, environment-friendly cars. Consider the impacts of the following proposed remedies:?Problem 4D: Update the payoffs in the original table to reflect a tax of 1.75 on large petrol hungry cars (in this instance, subtract 1.75 from the original payoffs for the large, gas guzzler cars).?Use the dot and circle method to determine the Singhs and Kapurs' best responses one to another according to these updated payoffs: i. If Singhs knows for sure that Kapurs will purchase a Large, gas guzzler car, then the Singhs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car ii. If Singhs knows for sure that Kapurs will purchase a Small, environment-friendly car, then the Singhs' best response is to purchase what type of car? a Large, gas guzzler car b. Small, environment-friendly car iii. If Kapurs knows for sure that Singhs will purchase a Large, gas guzzler car, then the Kapurs' best response is to purchase what type of car? ?a Large, gas guzzler carb.Small, environment-friendly car iv.If Kapurs knows for sure that Singhs will purchase a Small, environment-friendly car, then the Kapurs' best response is to purchase what type of car? ?a Large, gas guzzler carb.Small, environment-friendly car* ??* Problem 4E: Update the payoffs in the original table to reflect a legally binding agreement that if they buy different types of cars, the family which buys the large car will pay 1.0 to the other family (in this instance, reduce the payoff of the purchaser of the large, gas guzzler car by 1.0 and increase the payoff of the small, environment-friendly car by 1.0 when they purchase different types of cars).?Use the dot and circle method to determine the Singhs and Kapurs' best responses one to another according to these updated payoffs: i. If Singhs knows for sure that Kapurs will purchase a Large, gas guzzler car, then the Singhs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car ii. If Singhs knows for sure that Kapurs will purchase a Small, environment-friendly car, then the Singhs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car iii. If Kapurs knows for sure that Singhs will purchase a Large, gas guzzler car, then the Kapurs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car iv.If Kapurs knows for sure that Singhs will purchase a Small, environment-friendly car, then the Kapurs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car* ??* Problem 4F: Update the payoffs in the original table to reflect a subsidy of 1.75 on small environment-friendly cars (in this instance, add 1.75 to the original payoffs for the small, environment friendly cars).?Use the dot and circle method to determine the Singhs and Kapurs' best responses one to another according to these updated payoffs: i. If Singhs knows for sure that Kapurs will purchase a Large, gas guzzler car, then the Singhs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car ii. If Singhs knows for sure that Kapurs will purchase a Small, environment-friendly car, then the Singhs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car iii. If Kapurs knows for sure that Singhs will purchase a Large, gas guzzler car, then the Kapurs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car iv.If Kapurs knows for sure that Singhs will purchase a Small, environment-friendly car, then the Kapurs' best response is to purchase what type of car? ?a Large, gas guzzler car b.Small, environment-friendly car* ??* Problem 4G: Which of these policies would induce both families to choose small environmentally friendly cars?? a. A tax of 1.75 on large petrol hungry cars b. A legally binding agreement that if they buy different types of cars, the family which buys the large car will pay 1.0 to the other family c. A subsidy of 1.75 on small environment-friendly cars