Chapter 4.7, Problem 28E

The technology matrix for an economy based on energy $\left(E\right)$ and transportation $\left(T\right)$ is

$\begin{array}{l}\begin{array}{ccc}& E& T\end{array}\\ M=\begin{array}{c}E\\ T\end{array}\left[\begin{array}{cc}0.25& 0.25\\ 0.4& 0.2\end{array}\right]\end{array}$

(A) Find the output for each sector that is needed to satisfy a final demand of $\text{\$50}$ million for energy and $\text{\$50}$ million for transportation.

(B) Discuss the effect on the final demand if the transportation output in part (A) is increased by $\text{\$40}$ million and the energy output remains unchanged.