QUESTION 2 Two stores (store 1 and store 2) in your hometown are competing to increase their respective market shares. There are currently 200 000 people in your home town, and 80 000 of them do their shopping at store 1. In each period, store 1 customers have an 85% chance of returning, and 15% of them switching to store 2. Meanwhile, store 2 customers have 95% chance of returning, and 5% switching to store 1. a) Set up both the vector of state probabilities and the matrix of transition probabilities (3) b) Find the states of probabilities of the next period. (3) c) Find the states of probabilities of two periods from now. d) Find the equilibrium conditions and explain what it means. (6) [15] (3)