We consider an economy divided into three sectors: manufactured goods, agriculture and services. For an output of
Question:
We consider an economy divided into three sectors: manufactured goods, agriculture and services. For an output of one unit, the manufacturing sector needs 0.10 units from other firms in the sector, 0.30 unit of agriculture and 0.30 unit of services.
For an output of one unit, agriculture
uses 0.20 units from own output, 0.60 units from manufacturing and 0.10 units from services. For each unit of output, services consume 0.10 units of services, 0.60 units of manufactured goods and no agricultural products.
1. Write the consumption matrix C of this economy and calculate the intermediate demand created if agriculture foresees a production of 100 units.
2. Is the matrix Id3 − C invertible? If so, calculate its inverse.
3. Determine the levels of production needed to satisfy a final demand of 20 units of manufactured goods, 20 units of agricultural products and 0 units of services.
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair