A traveling saleswoman's territory consists of the 6 cities shown on the following mileage chart. The saleswoman must organize a round trip that starts and ends at Memphis (her hometown) and will pass through each of the other five cities exactly once.Mileage Chart
The cheapest-link tour starting from Memphis is given by:
A. Memphis, Atlanta, Denver, Houston, Dallas, Kansas City, Memphis.
B. Memphis, Atlanta, Denver, Kansas City, Houston, Dallas, Memphis.
C. Memphis, Atlanta, Houston, Dallas, Kansas City, Denver, Memphis.
D. Memphis, Dallas, Houston, Denver, Atlanta, Kansas City, Memphis.
E. none of these
Answer: A
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When money is spent on goods and services, those that receive the money also spend some of it. The people receiving some of the twice-spent money will spend some of that, and so on. Economists call this chain reaction the multiplier effect. In a hypothetical isolated community, the local government begins the process by spending D dollars. Suppose that each recipient of spent money spends 100c% and saves 100s% of the money that he or she receives. The values c and s are called the marginal propensity to consume and the marginal propensity to save and, of course, c+s=1. The number k = 1/s is called the multiplier. What is the multiplier if the marginal propensity to consume is 90%?
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