Sara's Sensible Critters Makes Two Kinds of Catnip Toys: Balls

question 5

Short Answer

Sara's Sensible Critters makes two kinds of catnip toys: balls (x1) and mice (x2). The relationship between demand and price for balls and mice is:
x₁ = 1800 - 150p₁
x₂ = 1500 - 300p₂
The cost for a catnip ball is $2 and for the mouse, $3.
Sara has only 200 ounces of catnip on hand. A ball uses a tenth of an ounce and a toy mouse uses one-quarter of an ounce.
-Sara has found an unlimited source of catnip so that is no longer a constraint. However, customer demand dictates that she produce 2.5 times more catnip balls than mice. Write the new constraint.

---

Definitions:

Federal Funds Target Rate

The interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, set by the Federal Reserve to influence economic conditions.

Government Bonds

Debt securities issued by a government to finance its expenditures, typically featuring a fixed interest rate and maturity date.

Interest Rates

Represents the charge or payment for the use of money, often expressed as an annual percentage of the loan or investment amount.

Stock Market Boom

A period of significant and rapid increases in the value of shares traded on stock exchanges, often reflecting optimism about the economy.