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Note that cach column sum in A is less than I, as it should be. Further, if we denotc by aj thc dollar amount of the primary input used in producing a dollar's worth of the jth com- modity, we can writc [by subtracting each column sum in (5.22) from 1]: ao 0.3 ao2-0.3 an0.4 (5.23) With the matrix A of (5.22), the open input-output system can be expressed in the form (1-4)x = d as follows: 0.8-0.3-0.2 di (5.24) -0.4 0.9-0.211x21=1d2 03 0.8 LJ Ld Here we have deliberately not given specific values to the final demands di, d2, and d3. In this way, by keeping the vector d in parametric form, our solution will appear as a "formula" into which we can feed various specifie d vectors to obtain various corresponding specific solutions.

Answer 1