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Refer to Example 3. Suppose the demand for raw rubber increases by 20%, the demand for tires increases by 40%, and the demand for other rubber-based products decreases by 10%. Find the level of production for each subsidiary in order to meet this demand. (Round your answers to one decimal place.) million raw rubber tires other rubber-based products million million

Refer to Example 3. Suppose the demand for raw rubber increases by 20%, the demand for tires increases by 40%, and the demand for other rubber-based products decreases by 10%. Find the level of production for each subsidiary in order to meet this demand. (Round your answers to one decimal place.) million raw rubber tires other rubber-based products million million

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
ChapterP: Prologue: Calculator Arithmetic
Section: Chapter Questions
Problem 10E: Heart Disease In a certain country, the number of deaths due to heart disease decreased from 235 in...
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Refer to Example 3. Suppose the demand for raw rubber increases by 20%, the demand for tires increases by 40%, and the demand for other rubber-based products decreases by 10%. Find the level of production for each subsidiary in order to meet this demand. (Round your answers to one decimal place.) $ million million million raw rubber tires other rubber-based products $ $
Transcribed Image Text:Refer to Example 3. Suppose the demand for raw rubber increases by 20%, the demand for tires increases by 40%, and the demand for other rubber-based products decreases by 10%. Find the level of production for each subsidiary in order to meet this demand. (Round your answers to one decimal place.) $ million million million raw rubber tires other rubber-based products $ $
APPLIED EXAMPLE 3 An Input-Output Model for a Three-Product Company TKK Corporation, a large conglomerate, has three subsidiaries engaged in producing raw rubber, manufacturing tires, and manufacturing other rubber-based goods. The production of 1 unit of raw rubber requires the con- sumption of 0.08 unit of rubber, 0.04 unit of tires, and 0.02 unit of other rubber- based goods. To produce 1 unit of tires requires 0.6 unit of raw rubber, 0.02 unit of tires, and 0 unit of other rubber-based goods. To produce 1 unit of other rub- ber-based goods requires 0.3 unit of raw rubber, 0.01 unit of tires, and 0.06 unit of other rubber-based goods. Market research indicates that the demand for the following year will be $200 million for raw rubber, $800 million for tires, and $120 million for other rubber-based products. Find the level of production for each subsidiary in order to satisfy this demand. Solution View the corporation as an economy having three sectors and with an input-output matrix given by Raw rubber A = Tires Goods Raw rubber Tires Goods 0.08 0.60 0.30 0.04 0.02 0.01 0.02 0 0.06
Transcribed Image Text:APPLIED EXAMPLE 3 An Input-Output Model for a Three-Product Company TKK Corporation, a large conglomerate, has three subsidiaries engaged in producing raw rubber, manufacturing tires, and manufacturing other rubber-based goods. The production of 1 unit of raw rubber requires the con- sumption of 0.08 unit of rubber, 0.04 unit of tires, and 0.02 unit of other rubber- based goods. To produce 1 unit of tires requires 0.6 unit of raw rubber, 0.02 unit of tires, and 0 unit of other rubber-based goods. To produce 1 unit of other rub- ber-based goods requires 0.3 unit of raw rubber, 0.01 unit of tires, and 0.06 unit of other rubber-based goods. Market research indicates that the demand for the following year will be $200 million for raw rubber, $800 million for tires, and $120 million for other rubber-based products. Find the level of production for each subsidiary in order to satisfy this demand. Solution View the corporation as an economy having three sectors and with an input-output matrix given by Raw rubber A = Tires Goods Raw rubber Tires Goods 0.08 0.60 0.30 0.04 0.02 0.01 0.02 0 0.06
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