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y^2 X y^3 = y^(2 + 3) = y^5
You can only do this if the coefficient 'y' is the same for both terms.
Remember
y^2 = y X y
y^3 = y X y X y
Hence
y^2 X y^3 = y X y X y X y X y = y^5
Similarly for division/subtraction
y^3 / y^2 = y^(3 - 2 ) = y^1 = y The power of '1' is trivial and not normally shown.
NB You CANNOT do z^2 X y^3 by adding the indices.
z^2 X y^3 is (z^2)*(y^3)
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