6. Consider a three-sector input-output model in which sector 1 is agriculture, sector 2 is manufacturing, and sector 3 is energy. Suppose that the input requirements are given by the following table: Units of agricultural goods Units of manufactured goods Units of energy output 1 unit of agricultural goods needs a 0.4 0.3 1 unit of manufacturing goods needs 0.2 0.1 0.2 1 unit of energy output needs 0.2 0.2 0.1 (where 0 < a < 1.) Now suppose that final demands for the three goods are 100, 80, and b units (b>0), respectively. If x1, x2, and x3 denote the number of units that have to be produced in the three sectors, a. Write down the Leontief equation system for the problem. b. What are the values of a and b that give the system unique solution.

6. Consider a three-sector input-output model in which sector 1 is agriculture, sector 2 is manufacturing, and sector 3 is energy. Suppose that the input requirements are given by the following table: Units of agricultural goods Units of manufactured goods Units of energy output 1 unit of agricultural goods needs a 0.4 0.3 1 unit of manufacturing goods needs 0.2 0.1 0.2 1 unit of energy output needs 0.2 0.2 0.1 (where 0 < a < 1.) Now suppose that final demands for the three goods are 100, 80, and b units (b>0), respectively. If x1, x2, and x3 denote the number of units that have to be produced in the three sectors, a. Write down the Leontief equation system for the problem. b. What are the values of a and b that give the system unique solution.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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