b) An economy consists of three sectors which include agriculture, manufacturing, and energy.
In general, part of the output of one sector is absorbed by another sector through inter-
industry purchases, with the excess available to fulfill consumer demands. The intra-
industrial and inter-industrial sales and purchases in millions of shillings for last financial
year is
From
To Consumer
Energy Agriculture Manufacturing demand
Energy 160 200 40 400
Agriculture 160 400 40 400
Manufacturing 80 200 120 0
Consumer demand has been forecasted to be worth sh. 550 million, sh. 700 million and sh.
100 million from energy, agriculture and manufacturing respectively.
Required
(i) Determine the output from each sector that will satisfy the new demands.
(ii) Distribute the output obtained in (ii) to the various users.