In 2020, a simple economy relied on three sectors: manufacturing, professional services, and agriculture: A total output of $165 of agriculture are produced. Of those, $100 are external demand, $20 go back to agriculture, $30 is sold to manufacturing, and $15 is sold to professional services. A total output of $90 of manufacturing services are produced. Of those, $35 are external demand, $15 go back to manufacturing, $10 are sold to agriculture, and $30 are sold to professional services. A total output of $60 of professional services are produced. Of those, $35 are external demand, none go back to professional services, $15 is sold to agriculture, and $10 to manufacturing services. Suppose in 2020o, external demand changes: agriculture doubles in demand and manufacturing demand is reduced by 50%. What is the total production of each sector?
In 2020, a simple economy relied on three sectors: manufacturing, professional services, and agriculture: A total output of $165 of agriculture are produced. Of those, $100 are external demand, $20 go back to agriculture, $30 is sold to manufacturing, and $15 is sold to professional services. A total output of $90 of manufacturing services are produced. Of those, $35 are external demand, $15 go back to manufacturing, $10 are sold to agriculture, and $30 are sold to professional services. A total output of $60 of professional services are produced. Of those, $35 are external demand, none go back to professional services, $15 is sold to agriculture, and $10 to manufacturing services. Suppose in 2020o, external demand changes: agriculture doubles in demand and manufacturing demand is reduced by 50%. What is the total production of each sector?
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Transcribed Image Text:In 2020, a simple economy relied on three sectors: manufacturing, professional services, and
agriculture:
A total output of $165 of agriculture are produced. Of those, $100 are external demand, $20 go
back to agriculture, $30 is sold to manufacturing, and $15 is sold to professional services.
A total output of $90 of manufacturing services are produced. Of those, $35 are external demand,
$15 go back to manufacturing, $10 are sold to agriculture, and $30 are sold to professional
services.
A total output of $60 of professional services are produced. Of those, $35 are external demand,
none go back to professional services, $15 is sold to agriculture, and $10 to manufacturing
services.
Suppose in 2020, external demand changes: agriculture doubles in demand and manufacturing
demand is reduced by 50%. What is the total production of each sector?
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