a) We have 100 = 0.5X^0.75 Y^2. This is equivalent to 200 = X^0.75 Y^2 or X = (200/Y^2)^(1/0.75)
At Y = 2, we have X = (200/4)^(1/0.75) = 184.2 and at Y = 5, we have X = (200/25)^(1/0.75) = 16.
b) MRSxy = MUx/MUy = 0.375Y/X. At Y = 2, MRS = 0.375*2/184.2 = 0.004. At Y = 5, MRS = 0.375*5/16 = 0.117
c) MRSyx = MUy/MUx = X/0.375Y. At Y = 2, MRS = 245.61. At Y = 5, MRS = 16/0.375*5 = 8.53
d) This gives Y = (50/(0.5*(2^0.75))^0.5 = 54.52
Assume U = 0SX0.75Y2, MUx = 0.375x-025. and MU,-X0.75Y. 1. Draw an indifference curve for U-100....
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