The consumer's utility function and related details are: U(X,Y) = X - (1/Y); MU(X)=1; MU(Y)= (1/Y^2); and MRS(XY) = Y^2. Both goods are priced at $1/unit. The consumer has income I = $100.

a) Determine the consumer's initial optimal bundle.

b) The price of Good Y increases to $2/unit. Perform the income-substitution effects decomposition.

c) Derive another point on the consumer's demand curve for Good Y.

d) The invisible income effect from (b) could be eliminated (erased) either by changing the consumer's

income (I) OR the price of Good X (while holding the new price of Good Y constant). How much would

income need to be changed? How much would PX need to be changed? What elements of the

consumer's indifference curves/budget constraint model were relevant to your answers?