Consider the Following Constraints from a Two-Variable Linear Program

question 48

Multiple Choice

Consider the following constraints from a two-variable Linear Program.
(1) X ≥ 0
(2) Y ≥ 0
(3) X + Y ≤ 50
If constraints (2) and (3) are binding, what is the optimal solution (X, Y) ?

• A) (0, 0)
• B) (0, 50)
• C) (50, 0)
• D) (50, 50)
• E) not enough information is provided to answer the problem

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Definitions:

Consumer Surplus

The variance between what consumers are prepared to pay for a product or service and the actual amount they end up paying.

Willingness To Pay

This is the maximum amount a consumer is prepared to spend on a good or service, reflecting the value the consumer places on it.

Demand Curve

A graphical representation showing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale.