Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 60% to Energy, and retains the rest. Lumber sells 15% of its output to Mining, 50% to Energy, 20% to Transportation, and retains the rest. Energy sells 20% of its output to Mining, 15% to Lumber, 20% to Transportation, and retains the rest. Transportation sells 20% of its output to Mining, 10% to Lumber, 50% to Energy, and retains the rest.
a. Construct the exchange table for this economy.
b. [M] Find a set of equilibrium prices for the economy.