Consider a Simple Economy Consisting of Three Sectors: Food, Clothing

Multiple Choice

Consider a simple economy consisting of three sectors: food, clothing, and shelter. The production of 1 unit of food requires the consumption of 0.4 unit of food, 0.2 unit of clothing, and 0.4 unit of shelter. The production of 1 unit of clothing requires the consumption of 0.3 unit of food, 0.4 unit of clothing, and 0.1 unit of shelter. The production of 1 unit of shelter requires the consumption of 0.2 unit of food, 0.1 unit of clothing, and 0.2 unit of shelter. Find the level of production for each sector in order to satisfy the demand for $100 million worth of food, $30 million worth of clothing, and $290 million worth of shelter. Round the answers to the nearest tenth.

A) $696.5 million worth of food
$358.8 million worth of clothing
$358.8 million worth of shelter
B) $578.2 million worth of food
$358.8 million worth of clothing
$696.5 million worth of shelter
C) $478.2 million worth of food
$328.8 million worth of clothing
$406.5 million worth of shelter
D) $696.5 million worth of food
$328.8 million worth of clothing
$578.2 million worth of shelter
E) $328.8 million worth of food
$406.5 million worth of clothing
$578.2 million worth of shelter