MHB Finding production level to meet demand

[cfleischer]

Suppose that an economy is composed of only three industries-coal, steel, and electricity. Each of these industries depends on the others for some of its raw materials. Suppose that to make \$1 of coal, it takes no coal, but \$.02 of steel and \$.01 of electricity; to make \$1 of steel, it takes \$.15 of coal, \$.03 of steel, and \$.08 of electricity; and to make \$1 of electricity, it takes \$.43 of coal, \$.20 of steel, and \$.05 of electricity. In this economy, to allow for consumption of \$2 billion coal, \$1 billion steel, and \$3 billion electricity, the coal, steel and electricity industries should produce \$3.72 billion, \$1.78 billion, and \$3.35 billion worth of output respectively, where all figures are carried to two decimal places.

Now suppose that in this economy the demand for electricity triples and the demand for coal doubles, whereas the demand for steel increases only by 35%. At what levels should the various industries produce in order to satisfy the new demand?____ billion (coal)
____ billion (steel)
____ billion (electricity)

 

[MarkFL]

Hello and welcome to MHB!

I have re-titled your thread, because a title like "please please please help!" doesn't tell anyone looking at the thread listings what the nature of the question is. A good thread title is at least one level more than the sub-forum in which it is posted.

A thread posted in one of our math sub-forums implies that some kind of help is being requested. So there is no need to explicitly ask for help in the thread title. A thread posted here in the "Business Mathematics" sub-forum implies that a question in the area of business mathematics is being asked. So, the thread title should briefly describe what kind of business mathematics question is being asked.

Since your question involves finding production levels to meet given demands, I chose a title that reflects this.

Okay, having stated that, we do also ask that our users show what they have tried or give their thoughts on how to begin so our helpers know where you are stuck or what you may be doing wrong, so that the best help can be given. If you just post the question, then you may get suggestions you have already tried, and this will waste not only the time of those trying to help (and we value the time of our helpers greatly), but it wastes your time as well and delays your getting the push in the right direction you are after.

So, can you post what you have tried so far? :D