Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 80% of its

Question:

Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 80% of its output to Services and keeps the rest, while Services sells 70% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures.