We assume that in a village there are famers, carpenters, and tailors, who provide the three essential goods: food, housing, and clothing. Suppose the farmers consume of the food (produced by farmers), ! of the housing (produced by carpenters) and of the clothes (produced by talors). The carpenter consumes of the food, of the housing, and of the clothes. The tailors consume of the food, t of the housing, and no clothes. Assume this is a closed Leontief model. If we know that the tailors produce 264 units of clothes, then the farmers produce units of food, and the carpenters produce units of housing.

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We assume that in a village there are farmers, carpenters, and tailors, who provide the three essential goods: food, housing, and clothing. Suppose the
farmers consume of the food (produced by farmers), of the housing (produced by carpenters) and of the clothes (produced by tailors). The
carpenter consumes of the food, of the housing, and of the clothes. The tailors consume of the food, of the housing, and no clothes.
Assume this is a closed Leontief model.
If we know that the tailors produce 264 units of clothes,
then the farmers produce
units of food,
and the carpenters produce
units of housing.
Transcribed Image Text:We assume that in a village there are farmers, carpenters, and tailors, who provide the three essential goods: food, housing, and clothing. Suppose the farmers consume of the food (produced by farmers), of the housing (produced by carpenters) and of the clothes (produced by tailors). The carpenter consumes of the food, of the housing, and of the clothes. The tailors consume of the food, of the housing, and no clothes. Assume this is a closed Leontief model. If we know that the tailors produce 264 units of clothes, then the farmers produce units of food, and the carpenters produce units of housing.
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