SOLUTION: Consider an economy with three sectors: Housing, Education, and Food. Housing sells 80% of its output to Education, 10% to Food, and retains the rest. Education sells 10% of its ou
Algebra ->
College
-> Linear Algebra
-> SOLUTION: Consider an economy with three sectors: Housing, Education, and Food. Housing sells 80% of its output to Education, 10% to Food, and retains the rest. Education sells 10% of its ou
Log On
Question 1161948: Consider an economy with three sectors: Housing, Education, and Food. Housing sells 80% of its output to Education, 10% to Food, and retains the rest. Education sells 10% of its output to Housing , 80% to Food, and retains the rest. Food sells 20% to Housing , 40% to Education, and retains the rest.
(i) Construct the exchange table for this economy.
(ii) Develop a system of equations that leads to prices at which each sectors income matches its expenses. Then write the augmented matrix that can be row reduced to find these prices. Find the prices.
This is an Economics question and requires specialized knowledge about Economics in order to turn this into a Mathematics question. You do that part and then perhaps we can help with the math. Otherwise, you are trying to buy produce at an Auto Parts store and spark plugs at the Supermarket.
John
My calculator said it, I believe it, that settles it
