# Homework Help: Leontief model

1. Sep 18, 2012

### charlies1902

I attached the problem.

I honestly have no idea how to even go about solving this problem. If someone can give me a hint, that'd be great.

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2. Sep 19, 2012

### Ray Vickson

Start by understanding what the problem is saying. You have a Leontief model of the form
$$\textbf{x} = C \textbf{x} + \textbf{d},$$
where d is external demand and C is the inter-sector internal demand matrix. The question is asking if it is OK to have cii > 1 for some i, and if not, why not.
It asks for both mathematical and real-world reasons.

RGV

Last edited: Sep 19, 2012
3. Sep 19, 2012

### pyroknife

I have read about the Leontief model but I still don't know how to answer the question. I think you should be able to have numbers greater than one along the diagnol