Respuesta :
Leontief input output model (technology matrix) is an economic model that shows the quantitative relationship and sectorial interdependency in a national economy
The responses with regards to the question are;
(i) The technology matrix for the economy is presented as follows;
[tex]\mathbf{ A} =\left[\begin{array}{ccc}Agric&&Textile\\0.4&&0.1\\&&\\0.1&&0.2\end{array}\right] \begin{array}{ccc}\mathbf{Per \ Unit}\\Agriculture\\\\Textile\end{array}\right][/tex]
(ii) The required gross production of each industry to meet the desired surplus are;
50 units of agriculture and 250 units of textile
The reason the above values are correct is as follows:
(i) The given parameters are;
The industries in the economy = Agricultural industry and textile industry
Units of agricultural input required per unit of agricultural output = 0.4
Units of textile input required per unit of agricultural output = 0.1
Units of agricultural input required per unit of textile output = 0.1
Units of textile input required per unit of textile output = 0.2
Let X represent agriculture, and let Y represent textile, we have;
[tex]Agric \ for \ agric = \dfrac{0.4 \ units \ of \ agriculture}{1\ unit \ of \ agric \ produced} \times X \ Agric \ produced= 0.4 \cdot X[/tex]
[tex]Agric \ for \ textile = \dfrac{0.1 \ units \ of \ agriculture}{1\ unit \ of \ textile \ produced} \times Y \ textile \ produced= 0.1 \cdot Y[/tex]
We also have;
Textile for agriculture = 0.1·X
Textile for textile = 0.2·Y
Therefore;
X = 0.4·X + 0.1·Y
Y = 0.1·X + 0.2·Y
Therefore;
The technology matrix for the economy is presented as follows;
[tex]\mathbf{Technology \ matrix, A} =\left[\begin{array}{ccc}Agric&&Textile\\0.4&&0.1\\&&\\0.1&&0.2\end{array}\right] \begin{array}{ccc}\mathbf{Per \ Unit}\\Agriculture\\\\Textile\end{array}\right][/tex]
(ii) Let P represent the production vector, and let d represent the demand vector, we have;
[tex]P = \left[\begin{array}{c}X \\Y\end{array}\right][/tex], [tex]d = \left[\begin{array}{c}5 \\195\end{array}\right][/tex]
P = A·P + d
∴ P - A·P = d
Therefore;
[tex]P = \mathbf{ \dfrac{d}{(I - A)}}[/tex]
Where I = The 2 by 2 identity matrix
We get;
[tex]I - A =\left[\begin{array}{ccc}1&&0\\&&\\0&&1\end{array}\right] - \left[\begin{array}{ccc}0.4&&0.1\\&&\\0.1&&0.2\end{array}\right] = \mathbf{\left[\begin{array}{ccc}0.6&&-0.1\\&&\\-0.1&&0.8\end{array}\right]}[/tex]
With the use of a graphing calculator, we have;
[tex]P =\left[\begin{array}{c}X \\Y\end{array}\right] = \dfrac{\left[\begin{array}{c}5 \\195\end{array}\right]}{\left[\begin{array}{ccc}0.6&&-0.1\\&&\\-0.1&&0.8\end{array}\right]} = \left[\begin{array}{ccc}50\\\\\ 250\end{array}\right][/tex]
The required gross product of agriculture, X = 50 units
The required gross product of textile, Y = 250 units
Learn more about the Leontief input output model here:
https://brainly.com/question/15417573
We have that he technology matrix for this economy and the the gross production of each industry are
a) [tex]X= \begin{vmatrix}0.4 & 0.1 \\0.1 & 0.2\end{vmatrix}[/tex]
b) [tex]\begin{vmatrix}A\\T\end{vmatrix}=\begin{vmatrix}50\\250\end{vmatrix}[/tex]
From the Question we have told that
Each unit of agricultural output requires 0.4 unit of agricultural input
Each unit of agricultural output requires 0.1 unit of textiles input.
Each unit of textiles output requires 0.1 unit of agricultural input
Each unit of textiles output requires 0.2 unit of textiles input.
Generally the technology matrix for this economy is given below
With
X =Agricultural industry Gross output
Y= Textile industry Gross Output
Therefore
[tex]X= \begin{vmatrix}0.4 & 0.1 \\0.1 & 0.2\end{vmatrix}[/tex]
b)
From the Question we are told that
Surpluses of 5 units of agricultural products and 195 units of textiles are desired.
Therefore, we have Desired surplus matrix of
[tex]D= \begin{vmatrix}5\\195\end{vmatrix}[/tex]
Generally the Technology equation is mathematically given as
[tex](I-X)\phi=D[/tex]
Where
X =Agricultural industry Gross output
I=A Unit matrix
\phi=Matrix of gross production
Therefore
[tex]\begin{vmatrix}1 & 0\\0 & 1\end{vmatrix}-(\begin{vmatrix}0.4 & 0.1 \\0.1 & 0.2\end{vmatrix}))\begin{vmatrix}A\\T\end{vmatrix}=\begin{vmatrix}5\\195\end{vmatrix}[/tex]
[tex]\begin{vmatrix}A\\T\end{vmatrix}=\begin{vmatrix}50\\250\end{vmatrix}[/tex]
In conclusion
The technology matrix for this economy and the the gross production of each industry are
[tex]X= \begin{vmatrix}0.4 & 0.1 \\0.1 & 0.2\end{vmatrix}[/tex]
[tex]\begin{vmatrix}A\\T\end{vmatrix}=\begin{vmatrix}50\\250\end{vmatrix}[/tex] Respectively
In conclusion
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