Lisa Lives Out in the Country with Her Seven Cats

question 55

Essay

Lisa lives out in the country with her seven cats and avoids driving into the big city as much as possible.She has decided to make her own cat food and has the following nutritional guidelines.Each four ounce portion must contain 22 units of protein,15 units of vitamin A,and 8 units of vitamin B.She has eggs,tomatoes,and chicken meat as possible inputs to her cat food.Each ounce of eggs contains 6 units of protein,4 units of Vitamin A,and 3 units of Vitamin B.Each ounce of tomatoes contains 1 unit of protein,8 units of Vitamin A,and 14 units of Vitamin B.Each ounce of chicken contains 22 units of protein,14 units of Vitamin A,and 8 units of Vitamin B.Chicken costs 40 cents per ounce,tomatoes cost 5 cents per ounce,and eggs cost 12 cents per ounce.To make the production process as easy as possible,she would like to make exactly four ounces of cat food from her recipe.She used POM for Windows and received the following results.Provide an interpretation.

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Definitions:

Aggregate Expenditures

The total amount of spending on goods and services in an economy at a given overall price level and in a given time period.

Spending Multiplier

the ratio of the change in total national income to the initial change in spending that brought it about, illustrating how initial spending leads to increased total spending in an economy.

Aggregate Spending

Aggregate spending is the total amount of spending in an economy, including consumption, investment, government expenditures, and net exports during a specific period.

Autonomous Saving

The portion of savings of an economy that is independent of income levels, often related to baseline savings by consumers and companies.