Consider the open economy described by the table below, where the input is in dollars needed for $1.00 of output. Provider Housing Food Utilities Housing 0.1 0.3 0.4 Input Required per Dollar Output Food Utilities 0.6 0.4 0.2 0.3 0.1 0.2 (a) Find the consumption matrix for the economy. (b) Suppose that the open sector has a demand for $ D worth of housing, $ E worth of food, and $ F worth of utilities. Find a production vector that will meet this demand exactly.

Consider the open economy described by the table below, where the input is in dollars needed for $1.00 of output. Provider Housing Food Utilities Housing 0.1 0.3 0.4 Input Required per Dollar Output Food Utilities 0.6 0.4 0.2 0.3 0.1 0.2 (a) Find the consumption matrix for the economy. (b) Suppose that the open sector has a demand for $ D worth of housing, $ E worth of food, and $ F worth of utilities. Find a production vector that will meet this demand exactly.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.1P

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