Question

An economy has two interdependent industries, Spice and Water. To produce $1 of spice, it takes...

An economy has two interdependent industries, Spice and Water. To produce $1 of spice, it takes
$0.15 of spice and $0.60 of water. To produce $1 of water, it takes $0.45 of spice and $0.10 of water.
Determine how much spice and water must be produced in order to meet a consumer demand for $2
million of spice and $2 million of water.

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Answer #1

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