Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 50% to Energy, and retains the rest. Lumber sells 15% of its output to Mining, 40% to Energy, 20% to Transportation, and retains the rest. Energy sells 30% of its output to Mining, 20% to Lumber, 30% to Transportation, and retains the rest. Transportation sells 10% of its output to Mining, 15% to Lumber, 40% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation Purchased by: .15 .3 .1 Mining 1 25 .2 .15 Lumber .5 4 .2 4 Energy 0 .2 .3 .35 Transportation (Type integers or decimals.) b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and Transportation sectors by PM. PL. PE and PT, respectively. If p+ $100, then PM = SPL = $ (Round to the nearest dollar as needed.) and PE =$
Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 50% to Energy, and retains the rest. Lumber sells 15% of its output to Mining, 40% to Energy, 20% to Transportation, and retains the rest. Energy sells 30% of its output to Mining, 20% to Lumber, 30% to Transportation, and retains the rest. Transportation sells 10% of its output to Mining, 15% to Lumber, 40% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation Purchased by: .15 .3 .1 Mining 1 25 .2 .15 Lumber .5 4 .2 4 Energy 0 .2 .3 .35 Transportation (Type integers or decimals.) b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and Transportation sectors by PM. PL. PE and PT, respectively. If p+ $100, then PM = SPL = $ (Round to the nearest dollar as needed.) and PE =$
Chapter1: Introducing The Economic Way Of Thinking
Section: Chapter Questions
Problem 10SQ
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Transcribed Image Text:Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its
output to Lumber, 50% to Energy, and retains the rest. Lumber sells 15% of its output to Mining, 40%
to Energy, 20% to Transportation, and retains the rest. Energy sells 30% of its output to Mining, 20%
to Lumber, 30% to Transportation, and retains the rest. Transportation sells 10% of its output to Mining, 15%
to Lumber, 40% to Energy, and retains the rest.
a. Construct the exchange table for this economy.
b. Find a set of equilibrium prices for this economy.
a. Complete the exchange table below.
Distribution of Output from:
Mining Lumber Energy Transportation
Purchased by:
.15
.3
.1
Mining
1
25
.2
.15
Lumber
.5
4
.2
4
Energy
0
.2
.3
.35
Transportation
(Type integers or decimals.)
b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and
Transportation sectors by PM. PL. PE and PT, respectively.
If p+ $100, then PM = SPL = $
(Round to the nearest dollar as needed.)
and PE =$
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