1. Iliana's preferences over mugs, m, and money, w, can be represented by the utility function: u(m,w) = 6m + w + 6(m rm) + (w rw) where rmis her mug reference point, rwis her money reference point, and (z) = { z, if z 0 2z if z < 0 is her gain/loss utility function. (a) If her reference point is the status quo, what is the minimum amount of money Iliana would be willing to accept instead of receiving a mug (that she did not already own)? In other words, if Iliana were a "chooser" how much money would she demand to forgo the mug? (b) Discuss why the values are different for Iliana if she is the seller, buyer, or choose