In a small town, there are 2 industries: an electric company and a gas works electric Town gas.

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Presentation transcript:

In a small town, there are 2 industries: an electric company and a gas works electric Town gas

In a small town, there are 2 industries: an electric company and a gas works electric Town gas External demand: each day the electric co must supply the town with $1000 worth of electricity $1000

In a small town, there are 2 industries: an electric company and a gas works electric Town gas External demand: each day the gas works must supply the town with $800 worth of gas $1000 $800

In a small town, there are 2 industries: an electric company and a gas works electric Town gas $1000 $800 Internal demands: To produce $1 worth of electricity, you need.10 worth of electricity and.05 worth of gas

In a small town, there are 2 industries: an electric company and a gas works electric Town gas $1000 $800 Internal demands: To produce $1 worth of electricity, you need.10 worth of electricity and.05 worth of gas To produce $1 worth of gas, you need.20 worth of electricity and.15 worth of gas

To produce $1 worth of electricity, you need.10 worth of electricity and.05 worth of gas To produce $1 worth of gas, you need.20 worth of electricity and.15 worth of gas x = total # dollars worth of electricity to be produced y = total # dollars worth of gas to be produced electricity needed to produce x dollars worth of electricity x =electricity needed to produce y dollars worth of gas gas needed to produce x dollars worth of electricity y =gas needed to produce y dollars worth of gas external demand

To produce $1 worth of electricity, you need.10 worth of electricity and.05 worth of gas To produce $1 worth of gas, you need.20 worth of electricity and.15 worth of gas x = total # dollars worth of electricity to be produced y = total # dollars worth of gas to be produced electricity needed to produce x dollars worth of electricity x = electricity needed to produce y dollars worth of gas gas needed to produce x dollars worth of electricity y = gas needed to produce y dollars worth of gas x.20 y.05 x.15 y

To produce $1 worth of electricity, you need.10 worth of electricity and.05 worth of gas To produce $1 worth of gas, you need.20 worth of electricity and.15 worth of gas x = total # dollars worth of electricity to be produced y = total # dollars worth of gas to be produced x = y = x.20 y.05 x.15 y

To produce $1 worth of electricity, you need.10 worth of electricity and.05 worth of gas To produce $1 worth of gas, you need.20 worth of electricity and.15 worth of gas x = total # dollars worth of electricity to be produced y = total # dollars worth of gas to be produced x = y = x.20 y.05 x.15 y

x = total # dollars worth of electricity to be produced y = total # dollars worth of gas to be produced