3 Complements vs. Substitutes (a) Roberto has an insatiable thirst for the drink known as the Arnold Palmer, which is a blend of lemonade and iced tea. The more Roberto consumes of this drink, the happier he is. Roberto's tastes are very exacting, and he insists on making his Arnold Palmers with an exactly equal ratio of the two ingredients. But Roberto does not care to drink either lemonade or iced tea on its own. Are lemonade and iced tea perfect substitutes, or perfect complements, for Roberto? (b) Sketch indifference curves that could represent Roberto's preferences: (0) Consider the following utility functions for goods L (lemonade) and T (iced tea). Which of these functions is the best match for Roberto's preferences? (Circle one.) U(L, T) = mm(L,T) U(L, T) = L T U(L, T) = L2T2 U(L, T) = L 4T3