Question

n economy has three industries, farming, building, and clothing. For every dollar of food produced, the farmers use $0.1, the builders use $0.05, and the tailors use $0.05. For every dollar of building, the builders use $0.05, the farmers use $0.11, and the tailors use $0.13. For every dollar of clothing produced, the tailors use $0.06, the builders use $0.15, and the farmers use $0.1. If the external demand for food is $260 million, for building is $200 million, and for clothing is $120 million, what should be the total production for each industry

Answer 1

Answer:

Please find the complete question for the solution:

Explanation:

Using formula:

$\text{Production for each industry = External demand} \div \%\ \text{to meet external demand}$

$- \ \ \ \ \ \ \ \ \ \ Farming \ \ \ \ \ \ \ \ \ \ Building \ \ \ \ \ \ \ \ \ \ Clothing \ \ \ \ \ \ \ \ \ \ \text{Remaining \% to meet external demand}\\\\\text{For every \ of:}\\\\\\ Food \ produced \ \ \ \ \ \ 7\% [(\frac{\ 0.07}{\ 1})\times 100] \ \ \ \ \ \ 3\% [(\frac{\ 0.03}{\ 1})\times 100] \ \ \ \ \ \ \ 6\% [(\frac{\ 0.06}{\ 1})\times 100 \ \ \ \ \ 84\%$

$Building\ \ \ \ \ \ \ \ 5\% [(\frac{\ 0.05}{\ 1})\times 100] \ \ \ \ \ \ \ \ 5\ [\frac{\ 0.05}{\ 1})\times 100] \ \ \ \ \ \ \ \ \ \ 13\% [(\frac{\ 0.13}{\ 1})\times 100]\ \ \ \ \ \ \ \ \ \ 77\%\\\\Clothing\ produced \ \ \ 18\% [(\frac{\ 0.18}{\ 1})\times 100]\ \ \ 4\% [(\frac{\ 0.04}{\ 1})\times 100]\ \ 13\% [(\frac{\ 0.13}{\ 1})\times 100] \ \ 65\%$

So, the answer is:

$\text{Farming production} (\ 170\ mil \div 84\%)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 202.38\ million\\\\\text{Building production} (\ 140\ mil \div 77\%)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 181.82 \ million\\\\\text{Clothing production} (\ 240\ mil \div 65\%)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 369.23\ million$