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Given the technology matrix, A, and the production vector, X, below: A = [ .1    .3 ]...

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cbromm | Honors

Posted July 19, 2013 at 5:19 PM via web

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Given the technology matrix, A, and the production vector, X, below:

A = [ .1    .3 ]                   X = [ 100 ]

      [ 2      0 ]                         [ 240 ]

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embizze | High School Teacher | (Level 1) Educator Emeritus

Posted July 19, 2013 at 5:53 PM (Answer #1)

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Given the technology matrix `A=([.1,.3],[2,0])` and the production vector `X=([100],[200])` :

The demand matrix can be found from D=X-AX:

`D=([100],[200])-([.1,.3],[2,0])([100],[200])`

`=([100],[200])-([70],[200])`

`=([30],[0])`

Thus the external demand is 30 units from sector 1, and no units from sector 2. (All products from sector 2 utilized to create products from sector 1 -- for example a cattle ranch uses corn for feed, but does not produce corn to sell, only to feed the cattle.)

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