Chapter 1.11, Problem 1E

An automobile mechanic (M) and a body shop (B) use each other’s services. For each $1.00 of business that M does, it uses $0.50 of its own services and $0.25 of B′s services, and for each $1.00 of business that B does it uses $0.10 of its own services and $0.25 of M′s services.

1. a. Construct a consumption matrix for this economy.
2. b. How much must M and B each produce to provide customers with $7000 worth of mechanical work and $14,000 worth of body work?