In the U.K. food costs about the same as in the U.S., but gasoline is 50% more expensive than in the U.S. Consider a second individual, whose utility function is U(F,G) = F0.5 + G0.5 . He currently lives in the U.S., where food costs $1 per unit, gasoline costs $4. His budget is $1000 per week, and he spends it all on these two goods. Hint: MUF = 0.5F-0.5, and MUG = 0.5G-0.5.

a. How much food does he consume per week? How much gasoline does he use per week? Call these amounts FUS and GUS

b. Suppose the individual's employer moves him to the U.K. Since gasoline is more expensive ($6 per unit) the employer agrees to increase the individual's wages. Suppose that this is done based on the amount of gasoline that the individual used in the U.S.---in other words, his new weekly budget is $1000 + $2 GUS . How much food and gasoline does he use per week in the U.K.?Why are the numbers different?

c. Calculate and compare the utility that the individual receives in the U.S. and in the U.K. Which is bigger? Why?