You are the mayor of Gotham City and you must determine a tax policy for the city. Five types of taxes are used to raise money:
The city consists of three groups of people: low income (LI), middle income (MI), and high income (HI). The amount of revenue (in millions of dollars) raised from each group by setting a particular tax at a 1% level is given in the file P09_41.xlsx. For example, a 3% tax on durable good sales will raise 360 million dollars from low-income people. Your tax policy must satisfy the following restrictions:
Given these restrictions, the city council has set the following three goals (listed in order of priority):
Use goal programming to determine an optimal tax policy.
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