Let us suppose that the utility function of Lucas is given as: U(food, clothing) = 4F + 3C.

(a) If Lucas's initial market basket A consists of 5 items of food and 4 items of clothing only, what is his total utility from A?

(b) If he decreases his food consumption to 3 units of food and his clothing consumption to 2 units, what is his new total utility from this new market basket B?

(c) Draw a set of indifference curves to show the above situations in (a) and (b). (Please label the graph properly. But the graph need not be at scale.)

(d) Will Lucas always prefer market basket B to market basket A? Why/ why not?