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

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Presentation on theme: "In a small town, there are 2 industries: an electric company and a gas works electric Town gas."— Presentation transcript:

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

3 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

4 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

5 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

6 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

7 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 ++ 1000 gas needed to produce x dollars worth of electricity y =gas needed to produce y dollars worth of gas ++ 800 external demand

8 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 ++ 1000 gas needed to produce x dollars worth of electricity y = gas needed to produce y dollars worth of gas ++ 800.10 x.20 y.05 x.15 y

9 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 =++ 1000 y =++ 800.10 x.20 y.05 x.15 y

10 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 =++ 1000 y =++ 800.10 x.20 y.05 x.15 y

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


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