Problem 1. Ann spends her $200 monthly income on karate lessons (k) and protein shakes (s). Her preferences are represented by the utility function \"1:106, s) = 216132 (1.1) Calculate Anngs marginal rate of substitution at the bundle (3.5). Provide an economic interpretation. (1.2) The price of karate is $20 per unit and the price of shakes is $10 per unit. Graph Ann's budget constraint and solve for Ann's optimal bundle. (1.3) Keeping her income and the karate price constant, nd Ann's individual demand curve for shakes as a function of the price of shakes. (1.4) Protein shakes have a new promotion: after the rst 10 shakes at $10 each, every additional shake costs only $5. Graph Ann's new budget constraint and solve for Ann's optimal bundle