The Brooks Appliance Store and the Lefingwell Appliance Store (both are located in the same city)each sell an identical washer-dryer pair.The owner of each store considered offering the washer-dryer pair for $700, but decided on a price of $500.If this is a Nash equilibrium we can conclude that

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If charging $500 was the most profitable strategy for each store, then there is no incentive for either store to deviate from this strategy. This is the definition of a Nash equilibrium, where neither player has an incentive to change their strategy given the strategy of the other player. Therefore, we can conclude that both stores chose to charge $500 because it was the most profitable strategy for each of them, regardless of what price was charged by the other store.

The Brooks Appliance Store and the Lefingwell Appliance Store (Both