Consider an input-output model with 3 sectors. Sector 1 is heavy industry, sector 2 is light industry, and sector 3 is agriculture. Suppose the input requirements are given by the following table: Agriculture Heavy Industry 0.1 Units of Heavy Industry Goods Units of Light Industry Goods Units of Agriculture Industry Goods a. Suppose the final demands for the three goods are 85, 95 and 20 units respectively. If x1, x2 and x3 denote the number of units that have to be produced in the three sectors, write down the Leontief system for the problem b. Verify that x1 = 150, x2 = 200 and x3 = 100 is the solution 0.3 Light Industry 0.2 0.2 0.2 0.2 0.1 0.2 0.1

Consider an input-output model with 3 sectors. Sector 1 is heavy industry, sector 2 is light industry, and sector 3 is agriculture. Suppose the input requirements are given by the following table: Agriculture Heavy Industry 0.1 Units of Heavy Industry Goods Units of Light Industry Goods Units of Agriculture Industry Goods a. Suppose the final demands for the three goods are 85, 95 and 20 units respectively. If x1, x2 and x3 denote the number of units that have to be produced in the three sectors, write down the Leontief system for the problem b. Verify that x1 = 150, x2 = 200 and x3 = 100 is the solution 0.3 Light Industry 0.2 0.2 0.2 0.2 0.1 0.2 0.1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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