Suppose the utility function of a representative consumer in Europe is !(#, %) = 6)*+# + )*+%, where # isnon-GM food and % is GM. The marginal utilities are: -!. = 6/# and -!0 = 1/%. The prices are 2. =2 and 20 = 1 and the representative income 4 = 14.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
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Suppose the utility function of a representative consumer in Europe is !(#, %) = 6)*+# + )*+%, where # is
non-GM food and % is GM. The marginal utilities are: -!. = 6/# and -!0 = 1/%. The prices are 2. =
2 and 20 = 1 and the representative income 4 = 14.  

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