Suppose That a Simple Economy Consists of Three Sectors: Agriculture

question 108

Essay

Suppose that a simple economy consists of three sectors: agriculture (A),manufacturing (M),and transportation (T).Economists have determined that to produce one unit of A requires
units of A,
units of B,and
units of T,while production of one unit of M requires
units of A,
units of M,and
units of T,and production of one unit of T requires
units of A,
units of M,and
units of T.There is an external demand for 20 units of A,40 units of M,and 10 units of T.Determine the production levels necessary to meet the external demand.

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Definitions:

Scatter Diagram

A scatter diagram, or scatter plot, is a type of graph used in statistics to visually represent the relationship between two variables, with points plotted to show the value of one variable depending on the value of the other.

Logical Function

In computing and mathematics, a function that evaluates a set of conditions and returns a true or false value.

IF

A conditional statement used in programming that executes a specific segment of code if a given condition is true.

VLOOKUP

A function in Excel and other spreadsheet software that searches for a value in the first column of a range and returns a value in the same row from a specified column.