2. Consider an agent who uses the reference-dependence model of Tversky and Kahneman in their evaluation of bundles of mugs (M) and pieces of candy (C). Assume the utility of a bundle x with reference point r = = (r, rc) is where v(t) = 2t t0 t < 0 U(M,C) = v(x r) + v(xc - rc), (a) Assume the reference point is r = (0,0). Does the agent prefer x = = (0, 1), y = (1,0), or are they indifferent between the two? (b) Assume the reference point is r = (0, 1). Does the agent prefer x = (0, 1), y = (1,0), or are they indifferent between the two? (c) Assume the reference point is r = (0,1). Does the agent prefer x = (0,2), y = (1, 1), or are they indifferent between the two? (d) Assume the reference point is r = (1,1). Does the agent prefer x = (0,2), y = (2,0), or are they indifferent between the two?