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Statistics problem for the Nerds!

L

lagvoid

Senior member
Anyone know how to solve this?

I'll start off with an example of what I'm working with here. Forming an equation out of a statement such as

"The company has 40 units of material to use. Item 1 requires 10 units and Item 2 requires 5"
Defining Item 1=x and Item 2=y

10x+5y<=40

This would be the correct formulation from that statement. I would be able to graph that equation by plugging in zero for either variable and solving for the other. (4, 0) and (0, 8)

The problem I'm having is for a statement such as, "At least twice as many of Item 1 must be produced as Item 2"

That could be represented by

X-2y=0

But I can't figure out how I would be able to use this to graph? Sorry if I'm not being clear enough but can anyone help?
 
This is an Econ problem, budget constraint problem to be exact.

The first graph describes exactly the opposite of the statement "At least twice as many of Item 1 must be produced as Item 2"

Do you see for every item 1 you produce, you can produce 2 item 2?
So that's the marginal rate of substitution.
 
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