Find the equilibrium price, Algebra

Suppose an economy has four sectors, Agriculture (A), Energy (E), Manufacturing (M), and Transportation (T). Sector A sells 10% of its output to E and 25% to M and retains the rest. Sector E sells 30% of its output to A, 35% to M, and 25% to T and retains the rest. Sector M sells 30% of its output to A, 15% to E, and 40% to T and retains the rest. Sector T sells 20% of its output to A, 10% to E, and 30% to M and retains the rest.

(a) Construct a diagram that shows the exchange between the three sectors.

(b) Determine the exchange table for this economy, where the columns describe how  the output of each sector is exchanged among the four sectors.

(c) Denote the prices of the total annual outputs of the sectors by pA, pE, pM and pT  respectively. Determine the equations that need to hold for the equilibrium prices  for the four sectors.

(d) Find the equilibrium prices, if they exist.

Posted Date: 4/3/2013 12:44:36 AM | Location : United States







Related Discussions:- Find the equilibrium price, Assignment Help, Ask Question on Find the equilibrium price, Get Answer, Expert's Help, Find the equilibrium price Discussions

Write discussion on Find the equilibrium price
Your posts are moderated
Related Questions

i need help with my homework

Can you help solve this word problem? christine collected some toys for charity. She donated 3/4 of the toys to charity A. then she donated 1/3 of the remaining toys to charity B.

Which shows the quadratic function f(x) = 2(x - 4)2 - 7 in standard form?


Have a % 56% discount have the amount of 285.13 what was the amount used to get to 285.13? How did you get?

A tank is filling with water from a natural spring. Two days ago the water was 10 feet deep, and yesterday the water was 12 feet deep. Assume that the water depth continues to rise


Five star coffee charges a 40 dollar start up fee and then 8 dollars per month. Custom coffee company charges a 25 dollar start up fee and 12.50 dollars per month. In which time fr