2019-02-01T11:03:26+00:00

How many units of each commodity should be produced?

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How many units of each commodity should be produced?

Suppose the following matrix represents the input-output matrix of a simplified economy that involves just three commodity categories: manufacturing, agriculture, and transportation. How many units of each commodity should be produced to satisfy a demand of 900 units for each commodity?

[0 1/4 1/3]
[1/2 0 1/4]
[1/4 1/4 0]

A) 2259 units of manufacturing, 2520 units of agriculture, and 2097 units of transportation
B) 2520 units of manufacturing, 2097 units of agriculture, and 2259 units of transportation
C) 2241 units of manufacturing, 2538 units of agriculture, and 2097 units of transportation
D) 2259 units of manufacturing, 2097 units of agriculture, and 2241 units of transportation


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