Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 70% to Energy, and retains the rest. Lumber sells 5% of its output to Mining, 50% to Energy, 25% to Transportation, and retains the rest. Energy sells 10% of its output to Mining, 15% to Lumber, 25% to Transportation, and retains the rest. Transportation sells 15% of its output to Mining, 20% to Lumber, 50% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation Purchased by: Mining Lumber Energy Transportation (Type integers or decimals.) b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and Transportation sectors by PM, PL, PE, and PT, respectively. If p₁ = $100, then PM = $, P₁ = $, and pε = $. (Round to the nearest dollar as needed.)
Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 70% to Energy, and retains the rest. Lumber sells 5% of its output to Mining, 50% to Energy, 25% to Transportation, and retains the rest. Energy sells 10% of its output to Mining, 15% to Lumber, 25% to Transportation, and retains the rest. Transportation sells 15% of its output to Mining, 20% to Lumber, 50% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation Purchased by: Mining Lumber Energy Transportation (Type integers or decimals.) b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and Transportation sectors by PM, PL, PE, and PT, respectively. If p₁ = $100, then PM = $, P₁ = $, and pε = $. (Round to the nearest dollar as needed.)
Chapter1: Introducing The Economic Way Of Thinking
Section: Chapter Questions
Problem 10SQ
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Transcribed Image Text:Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 70% to Energy, and retains the rest. Lumber sells 5% of its output to Mining, 50%
to Energy, 25% to Transportation, and retains the rest. Energy sells 10% of its output to Mining, 15% to Lumber, 25% to Transportation, and retains the rest. Transportation sells 15% of its output to Mining, 20%
to Lumber, 50% to Energy, and retains the rest.
a. Construct the exchange table for this economy.
b. Find a set of equilibrium prices for this economy.
a. Complete the exchange table below.
Distribution of Output from:
Mining Lumber Energy Transportation Purchased by:
Mining
Lumber
Energy
Transportation
(Type integers or decimals.)
b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and Transportation sectors by PM, PL, PE, and PT, respectively.
If p₁ = $100, then PM = $, P₁ = $, and pε = $.
(Round to the nearest dollar as needed.)
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