Suppose cost functionc(w₁;w₂;y) =w₁^1/2w₂^1/2y². The conditional demand for input 1 is:

Hints: (Shephard lemma, pg 5-6 in Chapter cost) The conditional demand for input 1, x1(w1,w2,y) = the derivative of cost function c(w1,w2,y) with respect to w1.

a.(1/2) (w_2/w₁)^1/2y²

b.(w_2/w₁)y²

c.(w_2/w₁)^1/2y²

d.(1/2)(w_2/w₁)y²