Two individuals are comparing two consumption bundles: Bundle 1 includes 3 loaves of bread and 2 cups of tea (QB = 3 and Qr = 2). Bundle 2 includes 1 loaf of bread and 4 cups of tea (QB = 1 and Qr = 4). Ethan has the following utility function: UE = 3QB + Qr. Kate has the following utility function: UK = 2QB + 3Qr. Which of the following is correct? O Both Ethan and Kate prefer bundle 1. O Ethan prefers bundle 1, and Kate prefers burkile 2. Ethan prefers bundle 2, and Kate prefers bundle 1. O Both Ethan and Kate prefer bundle 2