Let Xij = Gallons of Component I Used in Gasoline

question 70

Multiple Choice

Let xij = gallons of component i used in gasoline j. Assume that we have two components and two types of gasoline. There are 8000 gallons of component 1 available, and the demand gasoline types 1 and 2 are 11,000 and 14,000 gallons, respectively. Write the supply constraint for component 1.

• A) x21 + x22 ≤ 8000
• B) x12 + x22 ≥ 8000
• C) x11 + x12 ≤ 8000
• D) x21 + x22 ≥ 8000

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Definitions:

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the market economy driven by individuals' pursuit of their own self-interest.

Government Involvement

The extent to which the government intervenes in the economy, which can range from regulation and tax policy to direct control or ownership of businesses.

Self-Interest

The driving force in economics that motivates individuals to pursue their own objectives and desires, often leading to economic activity and exchanges.

Private Enterprise

Businesses or economic activities owned and managed by individual private owners rather than by the state.