Solve the Problem. -A Simplified Economy Has Only Two Industries, the Electric Company

question 105

Multiple Choice

Solve the problem.
-A simplified economy has only two industries, the electric company and the gas company. Each dollar's worth of the electric company's output requires 0.20 of its own output and 0.4 of the gas Company's output. Each dollar's worth of the gas company's output requires 0.50 of its own output And 0.7 of the electric company's output. What should the production of electricity and gas be (in Dollars) if there is a $16 million demand for electricity and a $7 million demand for gas?

• A)Electricity: $107.5 million; gas: $100 million
• B)Electricity: $115 million; gas: $103.5 million
• C)Electricity: $125 million; gas: $92.5 million
• D)Electricity: $97.5 million; gas: $103 million

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