Consider an economy divided into an agricultural sector (A) and an indus- trial sector (I). To produce one unit in sector A requires 1/4 unit from A and 1/4 unit from I. To produce one unit in sector I requires 1/6 unit from A and 1/4 unit from I. Suppose that final demands are 100 units of out put from sector A and 80 units of output from sector I. (a) this economy. (b) Find the number of units that has to be produced in each sector in order to meet the specified final demands. Write down the equation system for
Consider an economy divided into an agricultural sector (A) and an indus- trial sector (I). To produce one unit in sector A requires 1/4 unit from A and 1/4 unit from I. To produce one unit in sector I requires 1/6 unit from A and 1/4 unit from I. Suppose that final demands are 100 units of out put from sector A and 80 units of output from sector I. (a) this economy. (b) Find the number of units that has to be produced in each sector in order to meet the specified final demands. Write down the equation system for
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1

Transcribed Image Text:7. This question is about Matrix Application
Consider an economy divided into an agricultural sector (A) and an indus-
trial sector (I). To produce one unit in sector A requires 1/4 unit from A and
1/4 unit from I. To produce one unit in sector I requires 1/6 unit from A and
1/4 unit from I. Suppose that final demands are 100 units of output from sector
A and 80 units of output from sector I. (a) Write down the equation system for
this economy. (b) Find the number of units that has to be produced in each
sector in order to meet the specified final demands.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education