Suppose that an economy is composed of only three industries-coal, steel, and electricity. Each of these industries depends on the others for some of its raw materials. Suppose that to make $1 of coal, it takes no coal, but $.02 of steel and $.01 of electricity; to make $1 of steel, it takes $.15 of coal, $.03 of steel, and $.08 of electricity; and to make $1 of electricity, it takes $.43 of coal, $.20 of steel, and $.05 of electricity. In this economy, to allow for consumption of $2 billion coal, $1 billion steel, and $3 billion electricity, the coal, steel and electricity industries should produce $3.72 billion, $1.78 billion, and $3.35 billion worth of output respectively, where all figures are carried to two decimal places.

Now suppose that in this economy the demand for electricitydoublesand the demand for coaltriples, whereas the demand for steel increases only by15%. At what levels should the various industries produce in order to satisfy the new demand?