The economy of a small island nation is based on two sectors, agriculture and tourism. Production of a dollar's worth of agriculture requires an input of $ 0.25 from agriculture and $0.41 from tourism. Production of a dollar's worth of tourism requires an input of $ 0.50 from agriculture and $0.31 from tourism. Find the output from each sector that is needed to satisfy a final demand of $ 29 million for agriculture and $ 68 million for tourism. I need help understanding how to solve these types of questions. It involves Leontief's Input-Output Analysis. Is this the correct department for this question?
The economy of a small island nation is based on two sectors, agriculture and tourism. Production of a dollar's worth of agriculture requires an input of $ 0.25 from agriculture and $0.41 from tourism. Production of a dollar's worth of tourism requires an input of $ 0.50 from agriculture and $0.31 from tourism. Find the output from each sector that is needed to satisfy a final demand of $ 29 million for agriculture and $ 68 million for tourism. I need help understanding how to solve these types of questions. It involves Leontief's Input-Output Analysis. Is this the correct department for this question?
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model
Section: Chapter Questions
Problem 10CQ
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The economy of a small island nation is based on two sectors, agriculture and tourism. Production of a dollar's worth of agriculture requires an input of $ 0.25 from agriculture and $0.41 from tourism. Production of a dollar's worth of tourism requires an input of $ 0.50 from agriculture and $0.31 from tourism. Find the output from each sector that is needed to satisfy a final demand of $ 29 million for agriculture and $ 68 million for tourism. I need help understanding how to solve these types of questions. It involves Leontief's Input-Output Analysis. Is this the correct department for this question?
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