3. Consider the finite choice set C = {1, s, c, b}, with the following descriptions...

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3. Consider the finite choice set C = {1, s, c, b}, with the following descriptions of four cars: | = little sports car s = snow car (good in snow) c = comfortable car b = big boring SUV. Suppose that the decision maker decided to picks from the entire choice set C. Suppose that we hypothesize the following picks from some subsets of the choice set: C' = {I, c, b}, pick c. C" = {I, c} pick I. (a) Write down a list of all of the RP (is revealed preferred to) statements that we can get from this data. (b) Are there any violations of WARP? Explain. 3. Consider the finite choice set C = {1, s, c, b}, with the following descriptions of four cars: | = little sports car s = snow car (good in snow) c = comfortable car b = big boring SUV. Suppose that the decision maker decided to picks from the entire choice set C. Suppose that we hypothesize the following picks from some subsets of the choice set: C' = {I, c, b}, pick c. C" = {I, c} pick I. (a) Write down a list of all of the RP (is revealed preferred to) statements that we can get from this data. (b) Are there any violations of WARP? Explain.

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Answer Based on the information provided in the image the correct decision is to sell the equipment ... View the full answer