1. A consumer has utility function given by U (x, y) = x1/4y3/4, which has Marshallian demands given by x∗m = 1 4 I px y

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1. A consumer has utility function given by U (x, y) = x1/4y3/4,which has Marshallian demands given by x∗m = 1 4 I px y∗m = 3 4 Ipy (a) What is this consumer’s indirect utility function? (b) Howmuch utility does the consumer receive when px = 1, py = 3, and I =100? (c) Without solving directly for Hicksian demand, derive theconsumer’s expenditure function. (d) What is the value of theexpenditure function when px = 1, py = 3, and ̄U = 25? (e) Usingthe expenditure function and the Marshallian demands, derive theconsumer’s Hicksian demands for x and y.