Find the equilibrium price, Algebra

Assignment Help:

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.


Related Discussions:- Find the equilibrium price

Square root property, The second method of solving quadratics is square roo...

The second method of solving quadratics is square root property,                                                  If p 2   = d          then       p =±d There is a (potential

Modeling Data, The number in millions of people in the U.S. living below po...

The number in millions of people in the U.S. living below poverty level is shown for selected years. Find a degree 3 polynomial model for the data, where x is the number of years p

College algebra, $2.350 is invested in account paying 9% compound semiannua...

$2.350 is invested in account paying 9% compound semiannually. how much will the account be worth after 8yrs

Statistics, what are the two types of ogive curves

what are the two types of ogive curves

Absolute value equations, In the last two sections of this chapter we desir...

In the last two sections of this chapter we desire to discuss solving equations & inequalities that have absolute values.  We will look at equations along with absolute value in th

Solve word problem, In his boat, Leonard can travel 24 miles upstream in t...

In his boat, Leonard can travel 24 miles upstream in the same time it takes to travel 36 miles downstream. If the rate of the current is 2 mph, find the rate of the boat in still

Solve systems using method of substitution, Example   Solve following syst...

Example   Solve following systems. (a)    3x - y = 7                 2x + 3 y = 1 Solution Thus, it was the first system that we looked at above.  Already we know th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd