1.A person haspreferences of the form U(pounds ofrestaurant food,pounds ofhome food)= 0.6 * ln(pounds ofrestaurant food) + 0.4 * ln(pounds ofhome food)Which basket would they prefer?Note that"lbs." is the abbreviation for pounds.Restaurant foodHome foodBasket A1000 lbs.750 lbs.Basket B750 lbs.1000 lbs. 2. Thisquestionis a continuation of the previousone.The person has$25,000to spend on foodin total.How much do they spend on food at home and how much on food at the restaurant? 3. This question is a continuation of the previous one.Food in a restaurant costs $20 per pound,and food at home costs $10 per pound.How many pounds does the person consume at home,and how muchdo theyeatat therestaurant? 4. This question is a continuation ofthe previous one.Why does this choice contradict your answer to question 2,where they prefer the otherbasket? 5. This question is a continuation of the previous one.If the person buys one less pound of restaurant food, how many more pounds of home foodcould they buy? 6. Thisquestion is a continuation of the previous one.Instead of having $25,000 to spend on food, the person owns 2,500 pounds of food to makeat home. What is the value of this foodat the current prices,and is the optimal consumptionany different?