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

[tex]- \ \ \ \ \ \ \ \ \ \ 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\%\\\\[/tex]

[tex]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\%\\\\[/tex]

So, the answer is:

[tex]\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\\\\[/tex]

anthougo anthougo · Answer 2 · 2022-03-22T15:42:01+01:00

The total production for each industry is as follows:

Food Building Clothing

(Million) (Million) (Million)

Total production $325 $281.69 $173.91

How is total production determined?

The total production for each industry is determined by dividing the external demand by external usage per dollar.

The external usages per dollar are the differences between what the primary producers consumed or used and the total production per dollar.

Data and Calculations:

Food Building Clothing

Farmers' usage $0.1 $0.11 $0.10

Builders' usage $0.05 $0.05 $0.15

Tailors' usage $0.05 $0.13 $0.06

External usage $0.80 $0.71 $0.69

External demand $260 $200 $120

Total production $325 $281.69 $173.91 ($120/$0.69)

Thus, the total production for each industry is Food, $325 million, Building, $281.69 million, and Clothing, $173.91 million.

Learn more about production and consumption https://brainly.com/question/4978509