Suppose the coal and steel industries form an open economy. Every $1 produced by the coal industry requires $0.15 of coal and $0.20 of steel. Every $ 1 produced by steel requires $0.25 of coal and $0.10 of steel. Suppose that there is an annual outside demand for $45 million of coal and $ 1 24 million of steel.
(a) How much should each industry produce to satisfy the demands?
(b) If the demand for coal decreases by $5 million per year while the demand for steel increases by $6 million per year, how should the coal and steel industries adjust their production?