b. Develop a system of equations that leads to prices at which each sector's income matches its expenses. Then write the augmented matrix that can be row reduced to find these prices. The first, second, and third columns of the matrix should correspond to Chemicals, Fuels, and Machinery, respectively.The augmented matrix is ?? Consider an economy with three sectors, Chemicals & Metals, Fuels & Power, and Machinery. Chemicals sells 30% of its output to Fuels and 50% to Machinery andretains the rest. Fuels sells 70% of its output to Chemicals and 20% to Machinery and retains the rest. Machinery sells 40% of its output to Chemicals and 20% to Fuelsand retains the rest. Complete parts (a) through (c) below.a. Construct the exchange table for this economy.Distribution of Output from:FuelsChemicalsMachineryPurchased by:0.20.70.4Chemicals0.30.10.3Fuels0.2(Type integers or decimals.)0.50.3Machinery c. Find a set of equilibrium prices when the price for the Machinery output is 60 units.67.1= 42.4PMachineryPChemicals60.0%3DPFuels%3D(Type integers or decimals rounded to the nearest tenth as needed.)

Answered: b. Develop a system of equations that…

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

See similar textbooks

Related questions

Question

b. Develop a system of equations that leads to prices at which each sector's income matches its expenses. Then write the augmented matrix that can be row reduced to find these prices. The first, second, and third columns of the matrix should correspond to Chemicals, Fuels, and Machinery, respectively.

The augmented matrix is ??

Consider an economy with three sectors, Chemicals & Metals, Fuels & Power, and Machinery. Chemicals sells 30% of its output to Fuels and 50% to Machinery and
retains the rest. Fuels sells 70% of its output to Chemicals and 20% to Machinery and retains the rest. Machinery sells 40% of its output to Chemicals and 20% to Fuels
and retains the rest. Complete parts (a) through (c) below.
a. Construct the exchange table for this economy.
Distribution of Output from:
Fuels
Chemicals
Machinery
Purchased by:
0.2
0.7
0.4
Chemicals
0.3
0.1
0.3
Fuels
0.2
(Type integers or decimals.)
0.5
0.3
Machinery

c. Find a set of equilibrium prices when the price for the Machinery output is 60 units.
67.1
= 42.4
PMachinery
PChemicals
60.0
%3D
PFuels
%3D
(Type integers or decimals rounded to the nearest tenth as needed.)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Systems of Linear Equations$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, algebra and related others by exploring similar questions and additional content below.

Similar questions