(a) Consider an open economy with a consumption matrix C whose column sums are less than
Chapter 1, Problem 10(choose chapter or problem)
(a) Consider an open economy with a consumption matrix C whose column sums are less than 1, and let x be the production vector that satisfies an outside demand d; that is, . Let be the demand vector that is obtained by increasing the jth entry of d by 1 and leaving the other entries fixed. Prove that the production vector that meets this demand is (b) In words, what is the economic significance of the jth column vector of ? [Hint: Look at .]
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