The Following Linear Programming Problem Has Been Written to Plan

question 19

Multiple Choice

The following linear programming problem has been written to plan the production of two products.The company wants to maximize its profits.
X₁ = number of product 1 produced in each batch X₂ = number of product 2 produced in each batch
MAX: ^{150 X}₁ ^{+ 250 X}₂
Subject to: ^{2 X}₁ ^{+ 5 X}₂ ^{≤ 200}
3 X₁ + 7 X₂ ≤ 175 X₁,X₂ ≥ 0
How many units of resource one the first constraint) are used if the company produces 10 units of product 1 and 5 units of product 2?

• A)45
• B)15
• C)55
• D)50

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Definitions:

Income Elasticity

Measures how the quantity demanded of a good responds to a change in consumer income.

Normal Good

An item for which demand increases as the income of consumers increases, showing a direct relationship between income and demand.

Income Elasticity

A measure of how much the demand for a good changes as the income of consumers changes.

Normal Good

A good for which demand increases as the income of consumers increases, showing a positive correlation between income and demand.