5. (8 points) Assume a person has a rational weak preference, >, over the following set of alternatives: M = {horse, goat, sheep, chicken} If we know that horse z goat, chicken > goat, and goat > sheep, indicate whether the following statements are true, false, or if there is not enough information to determine. Please circle your answer. a. Horse z chicken True False Not Enough Info b. Chicken > goat True False Not Enough Info c. Goat z goat True False Not Enough Info d. Horse > sheep True False Not Enough Info 6. (8 points) Imagine you work for a firm that produces and sells specialized audio equipment. The company currently makes two lines of subwoofers: CB and SP. CB is a basic model and targets entry-level consumers. SP is a premium model that targets audio enthusiasts with higher quality, but a higher price. Given the following price and power numbers (assume higher number = better performance), design a third subwoofer product to act as a DECOY to increase the percentage of customers buying the premium SP model. a. Indicate the price and power level of the decoy in the chart below. Model Price Power (Watts) CB $75 300 W SP $300 1000 W Decoy b. Explain, using behavioral economics, why your plan will work