What is your set of possible alternatives

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Reference no: EM132041372

Question: You plan on buying a used car. You have $12,000 and you are not eligible for any loans. the prices of available cars on the lot are given as follows:

Make, model and year Price

Toyota Corolla 2002 9350

Toyota Camry 2001 10500

Buick Lesabre 2001 8825

Honda Civic 2000 9215

Subaru Impreza 2000 9690

For any given year, you prefer a Camry to an Impreza, an Impreza to a Corolla, a Corolla to a Civic, and a Civic to a LeSabre. For any given year, you are willing to pay $999 to move from any given car to the next preferred one. For example, if the price of the Corolla is z; then you are willing to buy it rather than a Civic if the Civic costs more than z 999 but prefer the civic if it costs less than this. For any given car, you are willing to move to a model a year older if it is cheaper by at least $500. For example, if the price of a 2003 Civic is x; then you are willing to buy it rather than a 2002 Civic, if the 2002 Civic costs more than x-500:

(a) What is your set of possible alternatives?

(b) What are your preferences between each pair of alternatives in your set?

Reference no: EM132041372

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