Consider an economy divided into agricultural sector, A, and service sector, S. To produce one unit in sector A requires 1/6 units from A and 1/4 units from S. To produce a unit of S requires 14 units from A and 1/4 units from S. Suppose final demands in each of the two sectors are 50 units. Let x and y denote total production in industries A and S respectively. What is the Leontief system for this economy?

Consider an economy divided into agricultural sector, A, and service sector, S. To produce one unit in sector A requires 1/6 units from A and 1/4 units from S. To produce a unit of S requires 14 units from A and 1/4 units from S. Suppose final demands in each of the two sectors are 50 units. Let x and y denote total production in industries A and S respectively. What is the Leontief system for this economy?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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