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(Tadelis p.12} You plan on buying a used car. You have $12,000 and you are not eligible for any loans. the prices of available cars

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(Tadelis p.12} 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: We, model and year Price Toyota Corolla 2002 9350 Toyota Cami}? 2001 10500 Buick Lesahre 2001 3325 Honda Civic 2000 9215 Subaru Impreca 2000 9590 For any given year, you prefer a Camry to an Impresa, an Irnpreaa to a Corolla, a lCorolla to a Cic, and a Civic to a LeSahre. 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 prioe of the Corolla is a, then you are willing to buy it rather than a Civic if the Civic costs more than a 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 I, then you are willing to buy it rather than a 2002 Civic, if the 2002 Civic costs more than I 500. {a} 1iiifhat is your set of possible alternatives? {h} 1What are your preferences between each pair of alternatives in your set? {c} 'What car would you choose

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