1) For question (1), answerbothof the options below:

a) Assume that a consumer with a fixed income must select the combination of widgets (W) and movies (M) that makes her happy. Briefly discuss the process this consumer uses to make her decision.

b) At a local amusement park, the price of rides is $2 per ride and the price of games is $1 per game. If your budget is $30, complete the table below, and use it to identify yourutility-maximizingcombinationof rides and games. Provide a rationale for the combination you choose.

Quantity Quantity MURides MUGamesMURides/PRides MUGames/PGames of Rides of Games 22 50 26 2 24 42 18 3 26 36 14 4 28 26 10