This is a coordination game with conflict of interest.

If Amy and Ben win free tickets to the concert, which means they do not have to pay for it, their payoff from attending the concert will each increase by 20. As a result, the game now becomes an invisible hand game.

If Ben has an arm injury, his enjoyment from playing tennis drop by 40. This is now a coordination game without conflict of interest.

If Amy and Ben are having a fight, and prefer not to spend time together, their enjoyment of the shared activity will be reduced by 60. This creates a coordination game with conflicting interests.

If a while after the fight, Amy and Ben are not angry at each other, they enjoy going to the concert together as before but they still do not want to play tennis together, the payoff for (tennis, tennis) is (10,10). Now this game is prisoner’s dilemma.

There are two Nash equilibra possible in this game

Teaching without activities is a dominant strategy for Ronnie

Teaching with activities is a dominant strategy for Lizzie

This game has a dominant strategy equilibrium

The Nash equilibrium is Pareto efficient

Pareto efficient allocations may be fair and may be not.

There are three Pareto efficient allocations for the climate change agreement game.

There is no Pareto efficient allocation.

There is only one Pareto efficient allocation for the climate change agreement game.

(7,1) pareto-dominates (2,2)

The change in the consumer’s utility when one good is substituted for another.

The amount of one good that the consumer is willing to trade for one unit of the other.

The ratio of the amounts of the two goods at a point on the indifference curve.

The slope of the indifference curve.

The introduction of an income tax as in the previous statement will induce a worker to work more.

The indifference curves of a workaholic are extremely steep.

Suppose the government taxes labour income at a rate of 20%. As a result the worker’s marginal rate of transformation decreases.

After his heart attack, Luis came to realize that he should enjoy life more. His indifference curves became steeper.

Continuation of the previous statement. The opportunity cost of a free day decreases as a result of the rent Frank receives.

Frank inherits a house from his aunt that he rents out, which provides him with an extra monthly income on top of his income from work. He will reach a new optimum where his utility definitely increases.