Construct the exchange table for this economy

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and retains the rest. Transportation sells 20% of its output to Agriculture, 30% to Manufacturing, 20% to Services, and retains the rest.

a. Construct the exchange table for this economy.

b. [M] Find a set of equilibrium prices for the economy if the value of Transportation is $10.00 per unit.

c. The Services sector launches a successful "eat farm fresh" campaign, and increases its share of the output from the Agricultural sector to 40%, whereas the share of Agricultural production going to Manufacturing falls to 10%. Construct the exchange table for this new economy.

d. [M] Find a set of equilibrium prices for this new economy if the value of Transportation is still $10.00 per unit. What effect has the "eat farm fresh" campaign had on the equilibrium prices for the sectors in this economy?

Reference no: EM131065393

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