Question

0.7.IxI 1.1

We assume that in a village there are farmers, carpenters, and tailors, who provide the three essential goods: food, housing, and clothing. Suppose the farmers consume 2/5 of the food (produced by farmers), 1/3 of the housing (produced by carpenters) and 1/2 of the clothes (produced by talors). The carpenter consumes 2/5 of the food, 1/3 of the housing, and 1/2 of the clothes. The tailors consume 1/5 of the food, 1/3 of the housing. and no clothes. Assume this is a closed Leontief model. If we know that the tailors produce 296 units of elothes, then the farmers produce housing.

Answer 1

The farmers produce 296 units of housing.

Step-by-step explanation:

To find out how much housing the farmers produce, we need to determine the proportion of housing consumed by the farmers and the total amount of housing produced by the carpenters. According to the given information, the farmers consume 1/3 of the housing produced by the carpenters. Since the tailors produce 296 units of clothes, we can assume that the carpenters produce the same amount of housing, as the farmers consume the same proportion of both goods. Therefore, the farmers produce 296 units of housing.