Total

Model A Model B
Steel 125 100 25000 0
Zinc 20 30 6000 0
Profit 145 130 Objective is to maximize profit

Model A Model B
Steel 125 100
Zinc 20 30
 Disposable income
(billions of dollars per year) Saving

0 5
100 80
to maximize profit 26925 200 155
300 230
400 305

0 5
100 80

200 155

300 230

400 305

F G
X M
60 15
60 30
60 45
60 60
60 75
60 90
Highest Inflation 2007
Lowest Inflation 2000, 2004
Increasing Inflation 1998, 2001, 2002, 2005, 2006, 2007
Decreasing Inflation 1999, 2000, 2003, 2004

5
Inflation Rate
4
8
3
Interest Rate
2
6
5
Growth Rate
1
44
0
1996
23 1998 2000 2002 2004 2006 2008
2
0
1996
1 1998 2000 2002 2004 2006 2008

0
1996 1998 2000 2002 2004 2006 2008
 A B C D E
1997 2.8 7.6 2.5 5.6
1998 2.9 7.4 3.7 5.4
1999 2.3 7.3 4.5 4.9
2000 1.6 6.5 4.2 4.5
2001 2.2 7 4.4 4.2
2002 3.4 7.6 3.7 4
2003 2.8 7.1 0.8 4.7
2004 1.6 6.5 3.6 5.8
2005 2.3 5.7 3.1 6
2006 2.5 5.6 2.9 4.6
2007 4.1 5.6 2.2 4.6
 Unemployment Rate
7
6
5
4
3
2
1
0
1996 1998 2000 2002 2004 2006 2008
 Line 1 Line 2 Line 3 Line 4 Line 5 Line 6
X Y X Y X Y X Y X Y X Y
1 5 1 25 0 0 0 40 0 0 0.1 100120
2 10 2 20 10 10 10 30 10 10 0.2 75
100
3 15 3 15 20 20 20 20 20 20 0.3 50
80
4 20 4 10 30 30 30 10 30 10 0.4 25
5 25 5 5 40 40 40 0 40 0 0.5 0 60
Slope 5 Slope -5 Slope 1 Slope -1 Slope 0 Slope -250 40
20
0
0.05 0.1 0.15

100 0
90 110
80 120
70 130
65 140
60 150
50 160
0 170
 Line 6
120
100

80
60
40
20
0
0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 0.55

Slope = -250
160 130 50
150 140 60
140 150 70
130 160 80
120 170 90
110 180 100
P Qs Qd
5 0 200
6 20 180
Supp
7 40 160
8 60 140 16
9 80 120 14
10 100 100 12
11 120 80 10
12 140 60 8
13 160 40
6
14 180 20
4
15 200 0
2
0
0 50
 Supply and Demand Curve

50 100 150 200 250

Qs Qd
 Corn
(pound/mothn) Cloth (
Workers in Marginal
No. of limes
limes productivity
0 0 \
1 5 5-0=5
2 8 8-5=3
3 9 9-8=1
Workers in No. of Marginal
coconuts coconuts productivity
0 0 \
1 1 1-0=1
2 2 2-1=1
3 3 3-2=1
 Effects of Additional Study
Study hours Philosophy ms French ms
0 80 \ 65 \
1 90 10 69 4
2 95 5 71 2
3 97 2 73 2
4 98 1 73 0
5 99 1 74 1
Additional Study
Economics ms Accounting ms
70 \ 82 \
74 4 85 3
78 4 88 3
82 4 90 2
86 4 92 2
88 2 93 1
Theaters Revenue

(dollars per
(number)
theater)

3,505 15,560
2,986 10,214
3,462 4,737
3,804 3,561