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Teresa Consumes Both Steak and Lobster

Question 6

Multiple Choice

Teresa consumes both steak and lobster.Suppose the formula for her indifference curves is S = U - 1.5L,where S stands for the number of steaks,L stands for the number of lobsters,and U represents utility.Which of the following bundles would Teresa prefer?


A) 10 steaks and 4 lobsters
B) 9 steaks and 5 lobsters
C) 12 steaks and 2 lobsters
D) There is not enough information to answer the question.

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