Question: Question 1 Suppose Kylie has the following reference-dependent value function: Vi) = { In(l + x) where z = 0 3In(l x) wherex 0 and

Question 1 Suppose Kylie has the following reference-dependent value function: Vi) = { In(l + x) where z = 0 3In(l x) wherex 0 and another for x = 07 (1 mark) (b) What is the significance of using the natural logarithm (In) in both parts of the function? (1 mark)

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